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The Government will sell over 3.74 crore shares of National Fertiliser Limited (NFL) at Rs 27 each on Wednesday. This is slightly above the closing price of Tuesday.
An Empowered Group of Ministers (EGoM), under the Chairmanship of Finance Minister P. Chidambaram, approved the base price for disinvestment. The shares will be sold through offer for sale mechanism, which is also known as the auction method. This method is used by the top 100 companies in terms of market capitalisation.
The share sale is expected to fetch nearly Rs 101 crore to the exchequer at current market price. Shares of NFL slipped over 10 per cent to close at Rs 26.70 on Tuesday on the BSE. The share price dropped to Rs 26.05 during trading hours, which is a 52-week low. The paid-up equity capital of the company, as on March 31, 2012, was Rs 490.58 crore.
The Cabinet Committee on Economic Affairs had last month cleared the proposal to divest 7.64 per cent or 3.74 crore shares. The Government holds 97.64 per cent stake in the company and the disinvestment is being done to make it compliant with the Securities and Exchange Board of India minimum shareholding norms.
The EGoM will consider the offer price for Nevyeli Lignite Corporation, STC and ITDC in the next two days. The Government proposes to raise Rs 40,000 crore by way of disinvestment in the current fiscal. So far, in the current fiscal, it has raised over Rs 800 crore.
shishir.Sinha@thehindu.co.in
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