RCF shares jump 3% after board approves Rs 1,500 crore FPO
RCF shares witnessed an uptick on Wednesday after the state-owned fertiliser maker's board approved raising up to Rs 1,500 crore through a further public offering (FPO). The proposal, aimed at issuing fresh equity shares, is subject to approvals f...
By Ritesh Presswala, ETMarkets.com |
ETMarkets.com
Shares of Rashtriya Chemicals & Fertilizers (RCF) climbed as much as 2.88% on Wednesday to an intraday high of Rs 134.68 after the state-owned fertiliser company announced key fundraising and corporate governance decisions.
In a regulatory filing, RCF said its board, at a meeting held on July 7, 2026, approved raising up to Rs 1,500 crore through a Further Public Offering (FPO) via a fresh issue of equity shares. The proposed fundraising is subject to approvals from shareholders, the Department of Fertilizers, the Government of India, and the Department of Investment and Public Asset Management (DIPAM).
The co's board also approved amendments to the company's Main Objects Clause and the adoption of a revised Memorandum of Association in line with the provisions of the Companies Act, 2013. The proposal will require approval from shareholders and the Department of Fertilizers.
Rashtriya Chemicals & Fertilizers currently commands a market capitalisation of Rs 7,221 crore. The stock has a 52-week high of Rs 164.49, indicating it is trading around 18% below its peak.
From a valuation perspective, the stock trades at a price-to-earnings (P/E) ratio of 17.16, a price-to-sales (P/S) ratio of 0.32, and a price-to-book (P/B) ratio of 1.43.
From a technical standpoint, Trendlyne data shows the stock's 14-day Relative Strength Index (RSI) at 50.4, indicating neutral momentum. Typically, an RSI below 30 signals that a stock is oversold, while a reading above 70 suggests it is overbought.
The stock also maintains a healthy technical structure, trading above 7 of its 8 key simple moving averages (SMAs). However, it remains just below its 200-day SMA, a long-term resistance level that investors closely monitor for signs of a sustained uptrend.
For the quarter ended March 2026, Rashtriya Chemicals & Fertilizers reported a strong operational performance. Consolidated revenue surged 49.5% year-on-year to Rs 5,649 crore, while consolidated net profit jumped 157.7% YoY to Rs 187 crore, reflecting robust earnings growth.
Also read: IndiGo, HPCL, other oil sensitive stocks plunge up to 5% as US strikes on Iran lift crude prices
During the March 2026 quarter, Foreign Portfolio Investors (FPIs) marginally increased their stake in the company to 2.60% from 2.50% in the previous quarter. Meanwhile, mutual funds trimmed their holdings slightly, reducing their stake to 0.14% from 0.18%.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
In a regulatory filing, RCF said its board, at a meeting held on July 7, 2026, approved raising up to Rs 1,500 crore through a Further Public Offering (FPO) via a fresh issue of equity shares. The proposed fundraising is subject to approvals from shareholders, the Department of Fertilizers, the Government of India, and the Department of Investment and Public Asset Management (DIPAM).
The co's board also approved amendments to the company's Main Objects Clause and the adoption of a revised Memorandum of Association in line with the provisions of the Companies Act, 2013. The proposal will require approval from shareholders and the Department of Fertilizers.
Share Price & Technical Outlook
Rashtriya Chemicals & Fertilizers currently commands a market capitalisation of Rs 7,221 crore. The stock has a 52-week high of Rs 164.49, indicating it is trading around 18% below its peak.From a valuation perspective, the stock trades at a price-to-earnings (P/E) ratio of 17.16, a price-to-sales (P/S) ratio of 0.32, and a price-to-book (P/B) ratio of 1.43.
From a technical standpoint, Trendlyne data shows the stock's 14-day Relative Strength Index (RSI) at 50.4, indicating neutral momentum. Typically, an RSI below 30 signals that a stock is oversold, while a reading above 70 suggests it is overbought.
The stock also maintains a healthy technical structure, trading above 7 of its 8 key simple moving averages (SMAs). However, it remains just below its 200-day SMA, a long-term resistance level that investors closely monitor for signs of a sustained uptrend.
March 2026 Quarter Performance and Shareholding Pattern
For the quarter ended March 2026, Rashtriya Chemicals & Fertilizers reported a strong operational performance. Consolidated revenue surged 49.5% year-on-year to Rs 5,649 crore, while consolidated net profit jumped 157.7% YoY to Rs 187 crore, reflecting robust earnings growth.ADVERTISEMENT
Also read: IndiGo, HPCL, other oil sensitive stocks plunge up to 5% as US strikes on Iran lift crude prices
During the March 2026 quarter, Foreign Portfolio Investors (FPIs) marginally increased their stake in the company to 2.60% from 2.50% in the previous quarter. Meanwhile, mutual funds trimmed their holdings slightly, reducing their stake to 0.14% from 0.18%.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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