Govt to sell 20 pc in NFL, 10 pc in RCF via offer for sale

The government will sell up to 20 per cent stake in National Fertilizers Ltd (NFL) and 10 per cent in Rashtriya Chemicals and Fertilizers (RCF) through an offer for sale in the current fiscal.

The Department of Investment and Public Asset Management (DIPAM) has invited bids from merchant bankers by May 5 for managing the proposed share sales.

The government holds 74.71 per cent in NFL and 75 per cent in RCF.

NFL had reported a profit after tax of Rs 198 crore for 2020-21 fiscal and has a net worth of Rs 2,117 crore as on September, 2020. RCF's profit after tax for 2019-20 fiscal stood at Rs 208.15 crore and net worth at Rs 3,186.27 crore as on March 2020.

At the prevailing market prices, sale of 20 per cent stake in NFL would fetch about Rs 500 crore, while 10 per cent in RCF would garner around Rs 400 crore to the exchequer.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)