Government to sell 12.5 per cent equity of RCF for about Rs360 crore

The government today approved the sale of 12.5 per cent equity capital of Rashtriya Chemicals and Fertilisers Ltd (RCF), to raise around Rs360 crore.

"The cabinet committee on economic affairs (CCEA) has approved 12.3 per cent divestment in RCF," finance minister P Chidambaram said after the CCEA meeting.

Government currently holds 92.5 per cent equity of RCF, which had a paid-up capital of Rs551.69 crore.

RCF will offer for sale 6,89,61,012 shares each of face value of Rs10 each, out of Government of India's shareholding of 92.5 per cent, in the domestic market, as per SEBI Rules and Regulations.

RCF has a paid-up equity capital of Rs551.69 crore comprising 55,16,88,100 equity shares, each of face value Rs10.

At the current market price of Rs57.80 a share, the sale of 12.5 per cent equity could fetch around Rs360 crore to the exchequer.