Govt to throw away 12.5% RCF stake; offer on 8 March
8 March 2013 5:04 AM IST
The public offer to sell 12.5 per cent stake in Rashtriya Chemical and Ferilisers (RCF), which could fetch around Rs 300 crore to the exchequer, will hit the markets on 8 March, a top government official said on Wednesday.
The Empowered Group of Ministers (EGoM) on disinvestment, headed by Finance Minister P Chidambaram, met on Wednesday and decided on the stake sale.
'Notice to exchanges will be given on Wednesday evening and OFS wil come day on Friday. Government wil divest 12.5 per cent stake,' Disinvestment Secretary Ravi Mathur told reporters here. The Finance Ministry is considering to sell 12.5 per cent stake, or 6.89 crore shares, of the company through the Offer For Sale (OFS) route.
Sources said the government could raise between Rs 250-300 crore from the stake sale.The government holds 92.5 per cent stake in RCF and the paid up capital of the company is Rs 551.69 crore.
The Cabinet had in December approved the stake sale of RCF.The RCF stake sale would help the government inch closer to the disinvestment target for the current fiscal. As per the revised estimates, the government is likely to raise Rs 24,000 crore through disinvestment in the current fiscal, lower than the budgeted Rs 30,000 crore.
The Empowered Group of Ministers (EGoM) on disinvestment, headed by Finance Minister P Chidambaram, met on Wednesday and decided on the stake sale.
'Notice to exchanges will be given on Wednesday evening and OFS wil come day on Friday. Government wil divest 12.5 per cent stake,' Disinvestment Secretary Ravi Mathur told reporters here. The Finance Ministry is considering to sell 12.5 per cent stake, or 6.89 crore shares, of the company through the Offer For Sale (OFS) route.
Sources said the government could raise between Rs 250-300 crore from the stake sale.The government holds 92.5 per cent stake in RCF and the paid up capital of the company is Rs 551.69 crore.
The Cabinet had in December approved the stake sale of RCF.The RCF stake sale would help the government inch closer to the disinvestment target for the current fiscal. As per the revised estimates, the government is likely to raise Rs 24,000 crore through disinvestment in the current fiscal, lower than the budgeted Rs 30,000 crore.
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