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RCF hits new high

Deeptha Rajkumar

MUMBAI, May 31

RASHTRIYA Chemicals and Fertilizers (RCF) Ltd hit a 52-week high amidst huge volumes on both NSE and BSE today. Rumours that the Cabinet Committee on Disinvestment (CCD) was meeting in New Delhi today to take a decision on RCF disinvestment provided the impetus to the hectic trading.

The share ended the day at Rs 34.30, up 16.95 per cent from Thursday's close of Rs 29.20 on the BSE. About 84.86 lakh shares changed hands in this counter. On the NSE, the share closed at Rs 34.35, up 18.44 per cent from Thursday's close of Rs 29. A record 1.44 crore shares changed hands.

In the last one month, the stock has been moving up sharply on talk of possible disinvestment of the public sector major. In this period, the share price has moved from Rs 14 (as on May 6) to its current level. Traded volumes also appeared to have almost quadrupled during this period.

Another reason behind the almost frenzied activity at this counter was the talk that the bidding price for disinvestment would be between Rs 80 and Rs 90 per share, market sources said.

RCF with an 18.15 lakh-tonne installed capacity is the largest urea manufacturer in the country. It manufactures and sells urea, complex fertilisers, ammonium-nitrate phosphate methylamine and others.

The company has a paid-up capital of Rs 551 crore. While Indian promoters hold about 98.6 per cent in the company, foreign collaborators hold 0.7 per cent, with a free float of about 0.7 per cent. The company is also expected to benefit considerably once urea prices are freed. The Union Government had increased urea prices marginally by five per cent in the Budget this year.

Also, the new fertiliser policy, which seeks complete decontrol of the sector, is expected shortly.

The streamlining of the fertiliser policy is looked upon as part of the Government's intentions to get a better price for RCF.

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