BackGovt clears 7.64% stake sale in National Fertilizers
The National Fertilizers stake sale is expected to fetch around `130 crore to the government
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New Delhi: The government has given its go ahead for 7.64% disinvestment in the National Fertilizers Ltd (NFL), which is expected to fetch around ₹ 130 crore to the exchequer.
The cabinet committee on economic affairs (CCEA) cleared the 7.64%, or 37.4 million, share proposal at its meeting on Thursday.
The government holds 97.64% stake in the company and the disinvestment is being done to make it complaint with Sebi norms, finance minister P. Chidambaram said on Friday while briefing on the CCEA decisions.
According to Sebi norms, a public sector listed company should have 10% public float by 8 August 2013. At the current market price of ₹ 34.65 a piece, the stake sale could fetch over ₹ 130 crore to the exchequer.
The company’s shares were trading at ₹ 34.65 apiece on BSE, up 2.21% from Thursday’s close.
The department of disinvestment (DoD) had approached CCEA for stake sale in the company. An inter-ministerial panel, headed by the disinvestment secretary, had cleared National Fertilizers’s stake sale last month. The paid-up equity capital of the company, as on 31 March 2012, was ₹ 490.58 crore.
The stake sale in National Fertilizers is part of DoD’s effort to meet the minimum 10% public shareholding norm as stipulated by the Securities and Exchange Board of India (Sebi) in public sector units.
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