Government to divest 5% in RCF on Jun 29-30; to raise Rs 200 crore

NEW DELHI: The government will sell over 2.75 crore equity shares in Rashtriya Chemicals and Fertilisers (RCF) on June 29-30 for about Rs 200 crore as part of its plan to divest shares in PSUs.

The government currently holds 80 per cent stake in RCF and will offload 5 per cent through the Offer for Sale (OFS) route.

"The President of India (acting through and represented by the Ministry of Chemicals & Fertilizers, Government of India) announced its intention to sell up to 2,75,84,405 equity shares of the company, representing 5 per cent of the total paid up equity share capital of the company," RCF said in a regulatory filing.

The floor price would be Rs 74.25 per equity share. The shares will be sold through a separate, designated window of the stock exchanges.

On June 29, only non-retail investors can place their bids while on the following day, retail investors as well as non-retail investors who chose to carry forward their bids, can place them.

Retail investors will be allocated offer shares at the discounted price, which is at a discount of 5 per cent to the cut-off price. Twenty per cent of the offer size will be reserved for retail investors.

So far, the government has garnered nearly Rs 6,400 crore from PSU disinvestment in the current fiscal. The Budget had estimated to collect Rs 72,500 crore through minority sale and strategic stake sale of CPSEs.