Rashtriya Chemicals share sale commences at Rs 45/share; stock rallies

NEW DELHI: Shares of Rashtriya Chemicals and Fertilizers ( RCF) rallied over 4 per cent in early trade on Friday as the company launched its one-day offer for sale ( OFS).

The government is divesting 12.50 per cent stake in RCF, which is likely to fetch the exchequer approximately Rs 300 crore at a floor price of Rs 45 per share.

At 09:20 am, RCF was trading 4 per cent higher at Rs 45.55. It hit a low of Rs 45.60 and high of Rs 46.00 in trade today.

Government shareholding in the company is expected to come down to 80 per cent post the stake sale from 92.5 per cent.

“So far, the government has raised Rs 21,500 crore through its disinvestment program for FY2013 fiscal as against its revised estimate of Rs 24,000 cr for the period,” Angel Broking said in a report.

Going ahead, MMTC, SAIL and NALCO are amongst the likely candidates for disinvestment. “The government has increased disinvestment target for FY2014 by 66.7% (at Rs 40,000 cr) as compared to its revised estimate and meeting the budgeted target would depend on buoyancy in the capital market,” said the brokerage report.