RCF share sale gets oversubscribed by institutional buyers
As of 10.25am, as against 2.20 crore RCF shares offered to institutional buyers, bids came in for over 2.30 crore shares, representing 1.04 times of the shares on offer
New Delhi: The government’s 5% stake sale in fertiliser public sector undertaking (PSU) Rashtriya Chemicals and Fertilisers Ltd (RCF) got off to a smooth start on Thursday, with institutional investors lapping up shares reserved for them within the first hour of trade.
Of its total holding of 80% in RCF, the government is selling 5%, or over 2.75 crore shares, at a floor price of Rs74.25. The floor price is at a discount of over 7% over the previous closing of Rs80. The offer for sale (OFS) would yield about Rs200 crore.
As of 10.25am, as against 2.20 crore shares offered to institutional buyers, bids came in for over 2.30 crore shares, representing 1.04 times of the shares on offer, as per data available on the National Stock Exchange (NSE). The share sale for Thursday will continue till close of the market. The two-day OFS began on bourses on Thursday with over 2.20 crore shares being sold to institutional investors.
Over 55 lakh shares have been reserved for retail investors who will also be offered an additional discount over the issue price. Retail investors, for whom the share sale will open Friday, are defined as individual ones who place bids for sales of total value of not more than Rs2 lakh in aggregate.
In the secondary market, the RCF stock is trading at Rs75.95, down 5.06%, on the NSE. In the morning trade, the scrip had touched a low of Rs75.70.
RCF is the fourth disinvestment of the current fiscal, which began on 1 April. The government has already raised around Rs6,600 crore through share sales this fiscal. Of this, Rs1,207 crore have come from initial public offering of Hudco in May and Rs1,192 crore through Nalco OFS in April.
Besides, around Rs4,200 crore have been raised through stake sale in L&T held through Specified Undertaking of Unit Trust of India (SUUTI) earlier this month. For this fiscal, the government has set a target of Rs46,500 crore through minority stake sale and Rs15,000 crore from strategic disinvestment.
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