The Centre plans to sell 15% of its stake in National Fertilizers (NFL) and 5% in Rashtriya Chemicals and Fertilizers (RCF), the Department of Investment and Public Asset Management (DIPAM) said on Thursday, inviting applications from merchant bankers to manage the issues.
The offers for sales (OFS) in NFL could fetch Rs 230 crore while Rs 130 crore is expected from RCF at current share prices on BSE.
The share sales would bring down the government holding in both fertiliser companies to about 75%, thereby meeting market regulator Sebi’s guidelines that mandate minimum 25% public holding in listed firms.
On Wednesday, the government kick-started the FY17’s Rs 56,500 crore disinvestment programme with 11.36% stake sale in NHPC through OFS to raise about Rs 2,700 crore.
Separately, DIPAM has also recently invited bids from merchant bankers to manage the government’s 10% stake sale each in Oil India and NMDC that could fetch it about Rs 1,900 crore and Rs 3,800 crore at current prices, respectively. The government has lined up small stake sales in more than a dozen PSEs, including Coal India, Oil and Natural Gas Corporation, Hindustan Aeronautics Ltd and Power Finance Corporation.
Out of the Rs 56,500-crore disinvestment revenue target set for the current fiscal, Rs 36,000 crore is estimated to come from minority stake sales in PSEs, while the remaining Rs 20,500 crore would come from strategic stake sales.