NFL stake sale gets nod, issue hits markets today

Written by fe Bureau | New Delhi | Updated: Jul 31 2013, 15:43pm hrs
An empowered group of ministers (EGoM) on Tuesday approved the proposal to disinvest 7.64% stake in National Fertilisers (NFL). The issue is scheduled to hit the markets on Wednesday.

Disinvestment secretary Ravi Mathur said the EGoM has approved the offer for sale or auction route for NFL. The base price for the OFS would be made public after the close of market hours. Sources said the price would be at a discount to the current market price. The empowered group on disinvestment is headed by finance minister P Chidambaram.

The share sale is expected to fetch around R100 crore to the exchequer at current market price.The Cabinet Committee on Economic Affairs (CCEA) had last month cleared the 7.64%, or 3.74 crore share proposal.

The government holds 97.64% stake in the company and the disinvestment is being done to make it compliant with Sebi norms. In order to comply with Sebi's minimum listing norms, a public sector listed company should have 10% public float by August 8, 2013.

The paid-up equity capital of the company, as on March 31, 2012, was R490.58 crore. The government proposes to raise R40,000 crore by way of disinvestment in the current fiscal.

So far in the current fiscal it has raised over R800 crore.