RCF OFS gets fully subscribed

MUMBAI: The offer for sale of Rashtriya Chemical & Fertilizers has been fully subscribed. The issue size of 6.89 crore shares received 8.89 crore bids at an indicative price of Rs 45.02 per share.

The Government of India plans to raise around Rs 300 crore through the OFS. Angel Broking has recommended investors to subscribe to the issue. It is of the view that the new urea investment policy and capacity expansion plans provide the company a healthy outlook.

However, being a public sector company in a highly regulated industry, the implementation of projects as well as the policies might get delayed, which may pose a risk to the company’s future.

“The RCF issue as it is fairly valued and the successful completion of projects in pipeline will provide upside to the stock in the future,” a report from Angel Broking said.

RCF, a Miniratna PSU, is in the business of manufacturing and marketing of various fertilizers and chemicals and is among the leading players in its industry segment.

It is the fourth largest producer of urea with a market share of 10.7 per cent and total capacity of ~23lakh MT p.a. in India. The company has two operating units at Trombay and Thal in Maharashtra. RCF has expanded its revenue stream and product portfolio through sale of imported diammonium phosphate and muriate of potash.

The stock ended at Rs 45.40, up 3.42 per cent, on the NSE. It touched a high of Rs 46.40 and a low of Rs 44.60 in trade today.