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Govt okays plan to throw away 7.64% National Fertilisers stake

Govt okays plan to throw away  7.64% National Fertilisers stake
Government has given its go ahead for 7.64 per cent disinvestment in the National Fertilisers Ltd (NFL), which is expected to fetch around Rs 130 crore to the exchequer.

The Cabinet Committee on Economic Affairs (CCEA) cleared the 7.64 per cent or 3.74 crore share proposal at its meeting on Thursday.
Government holds 97.64 per cent stake in the company and the disinvestment is being done to make it complaint with Sebi norms, Finance Minister P Chidambaram said on Friday while briefing on the CCEA decisions. As per Sebi norms, a public sector listed company should have 10 per cent public float by 8 August, 2013.

At the current market price of Rs 34.65 a piece, the stake sale could fetch over Rs 130 crore to the exchequer.The Department of Disinvestment (DoD) had approached the CCEA for stake sale in the company.

An inter-minsterial panel, headed by Disinvestment Secretary, had cleared NFL stake sale last month.The paid-up equity capital of the company, as on 31 March, 2012, was Rs 490.58 crore. The stake sale in NFL is part of DoD's effort to meet the minimum 10 per cent public shareholding norm as stipulated by market regulator Sebi for PSUs.

The government uses the OFS route, popularly known as auction method, to divest its stake in PSUs that come under top 100 companies in terms of market capitalisation. It has already used the route to sell stake in Oil India, NTPC, NMDC and Hindustan Copper during last fiscal.
The government proposes to raise Rs 40,000 crore by way of disinvestment in the current fiscal.
Agencies

Agencies

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