Promoters to hike stake in NFCL

The promoters of Nagarjuna Fertilisers and Chemicals (NFCL) are planning to raise their stake from around 45% to 50% through a preferential offer.

The company’s board has already approved the move nearly three months ago, said group chairman KS Raju. He was categorical that promoters were not planning to exit the company.

The NFCL sock has been steadily gaining on the BSE, its price doubling in two months over rumours of a possible selloff. NFCL’s plant is in Kakinada, where the company has about 1,100 acres of land.

The plant occupies around 370 acres. Speculation has been rife that the company is planning to enter real estate development.

The NFCL stock closed at Rs 37.55 on Monday, up by 15.54% compared to Friday.