Govt seeks bids for 10% stake divestment in Rashtriya Chemicals and Fertilizers

The authorities has sought bids from prime 19 law firms for choosing authorized advisors that can facilitate for disinvestment of 10% fairness in Rashtriya Chemicals & Fertilizers Limited (RCFL) by a proposal for sale or OFS.

Firms are to submit their bids by January 29, the division of funding and public asset administration (DIPAM) stated on Friday.

The authorities has individually sought bids from merchant bankers or promoting brokers in the transaction, the final date for which has been set at January 28.

Bidders ought to have dealt with and accomplished at the least one home fairness difficulty of the scale of Rs 200 crore or extra throughout October 1, 2017 and September 30, 2020, the federal government has stated as one of many circumstances.

The legislation agency appointed will act as authorized adviser to the transaction and submit proposals in consortium with a global legislation agency of reputation, with related expertise and experience in public choices or OFS in capital markets.

Government holds 75% fairness in the mini-ratna fertilizers and chemical compounds manufacturing firm.

“The government is also considering allotting shares to eligible and willing employees of RCFL at a discount on the issue or discovered price (lowest cut off price) up to a maximum of certain percentage of the OFS size subsequent to completion of the transaction under OFS,” the division added.

The share and extent shall be determined in due course.

Rashtriya Chemicals & Fertilizers Limited is beneath the executive management of ministry of chemical compounds and fertilizers. It has two working models, one at Trombay in Mumbai and the opposite at Thal, Raigad district, about 100 kms from Mumbai.

RCFL manufactures Urea, Complex Fertilizers, Bio-fertilizers, Micro-nutrients, 100% water soluble fertilizers, soil conditioners and a variety of business chemical compounds. It produces round 25 lakh MT urea, 4.75 Lakh MT complicated fertilizers and 4.5 Lakh MT of business chemical compounds yearly.

The authorised share capital of the corporate is Rs 800 crore and the paid up fairness capital is Rs. 551.69 crore as on March 31, 2020. As on March 31, 2020, it has a internet price of Rs. 3186.27 crore.