Government Plans 10% Share Sale In Rashtriya Chemicals And Fertilizers
The government is planning to sell a 10% stake in Rashtriya Chemicals and Fertilizers Ltd. and invited bids from merchant banker and legal firms for managing the share sale process.
Interested merchant bankers and legal advisers will have to be submit their bids by Jan. 28 and Jan. 29, respectively, the Department of Investment and Public Asset Management said in a notice.
The government holds a 75% stake in RCF and intends to disinvest 10% of the paid-up equity capital through an offer-for-sale.
The merchant banker would be required to advise the government on the timing and the modalities of the offer-for-sale, ensure best return from the government and assist in securing approval and exemptions, wherever necessary, from regulatory agencies.
The government will select and appoint two merchant bankers for managing the share sale process.
Shares of RCF had closed at Rs 54 apiece on Friday. At the current market price, the 10% stake sale would fetch about Rs 300 crore to the exchequer.