Now, ready your financial bid for National Fert

NEW DELHI: The diisinvestment of National Fertiliser is set to enter the final lap with government planning to call the financial bids from the prospective bidders within a fortnight.
Government sources said the draft shareholders agreement and the share purchase agreement for the sale of 51 per cent stake would be finalised at the Cabinet Committee on Disinvestment (CCD) on Saturday when it meets to finalise the IPCL disinvestment.
The financial bids are expected to be finalised at a CCD meeting to be held late June.
Meanwhile, with the Cabinet Committee on Economic Affairs (CCEA) clearing the seventh and eight pricing plans, the government has decided to place a proposal to divest 51 per cent stake in two fertiliser companies — Rashtriya Chemicals and Fertilisers (RCFL) and Fertiliser and Chemicals (Travancore) (FACT) — before the core group of secretaries on disinvestment for approval.
The Disinvestment Commission had recommended 51 per cent sale of government holding in these companies.
A roadmap for divestment of government holding in these companies would be decided at a later date. Rashtriya Chemicals, a mini-ratna PSU, had reported net profit of Rs 64 crore in 2000-01 on a turnover of Rs 2,092 crore. It has paid-up equity capital of Rs 551.69 crore.
FACT had reported a loss of Rs 152 crore on turnover of Rs 1,733 crore during the same period. It has a paid-up equity capital of Rs 354.77 crore.
Four companies — Tata Chemicals, Indo-Gulf Corporation, Chambal Fertilisers and Oswal Chemicals — have been shortlisted to buy the 51 per cent holding put on offer in National Fertiliser. The paid up equity capital of the PSU is Rs 490.58 crore.
The reserve price for the company’s share is likely to be fixed between Rs 42-45 apiece. The indicative valuation for the 51 per cent stake is approximately Rs 1,000 crore.
National Fertilisers is one of India’s largest fertiliser companies with four units located in Haryana, Madhya Pradesh and Punjab. The government owns a 97.64 per cent stake in the firm.
Fertiliser is a highly controlled sector in India with the government fixing prices of key items. It also changes the pricing norms of products such as urea from time to time resulting in a change in profitability of key companies.