Shares of Rashtriya Chemicals and Fertilizers (Rs 30) and National Fertilizers (Rs 45) were down 4% each on the BSE after these companies announced that the Government of India is considering divesting its stake through Offer for Sale (OFS).
“The government of India is considering divesting 5% of its stake of Rashtriya Chemicals and Fertilizers (RCF) in domestic market through “Offer for Sale” of shares through stock exchange (OFS). For this purpose Government of India has invited proposals from reputed merchant bankers/selling brokers with experience and expertise in public offering/OFS in capital markets to act as merchant bankers/selling brokers and to assist and advise Government in the process,” RCF said in a BSE filing.
National Fertilizers said, Ministry of Finance, Department of Investment and Public Asset Management (DIPAM), government of India seeking proposals for engagement of merchant bankers and selling brokers for the disinvestment of National Fertilizers through the “Offer for sale by promoters through the stock exchange” method in the domestic market.
As of March 2016, the government of India held 90% stake in National Fertilizers and 80% holding in RCF, as per the shareholding data.