RCF stake sale fetches government Rs310 crore

The government has raised around Rs310 crore by selling 12.5 per cent of the equity of Rashtriya Chemicals and Fertilizers Ltd (RCF), in a sale that was oversubscribed by about 30 per cent.

RCF, the country's largest state-rum fertiliser company, received bids for 88.9 million shares against the offer for sale of 68.9 million shares.

RCF had set an indicative price of Rs45.02 per share for the stake sale. The indicative price, which is the weighted average price of all valid bids, was Rs45.02 a share. At this price, the government would garner at least Rs310 crore.

Of the total bids received, over 19.1 million shares were bid at 100 per cent margin while 60.3 million shares were bid at zero premium.

Those who bid at a higher premium would be allowed to withdraw if they decide to do so at a later stage while those bid at zero per cent margin may not be allowed to withdraw from the bid.

The final bids and the cut-off price will be announced after the stock exchanges compile all data.