The government will sell 3.74 crore shares in National Fertilizers Ltd (NFL) through an offer for sale on Wednesday. The base price for the OFS has been fixed at Rs 27 per share, which is 1.12 per cent higher than the current market price of Rs 26.70.
The share sale is expected to fetch Rs 101 crore to the exchequer. Shares of NFL lost 10.25 per cent in today’s trade to close at Rs 26.70 on the BSE. “The EGoM has cleared NFL offer for sale. The issue will hit the markets tomorrow,” disinvestment secretary Ravi Mathur said.
“The floor price for the sale in terms of Sebi OFS Circulars shall be Rs 27 per equity share,” NFL said in a filing to the BSE. The Cabinet Committee on Economic Affairs (CCEA) had last month cleared the 7.64 per cent share sale proposal. The government holds 97.64 per cent stake in the company and disinvestment is being done to make it compliant with Sebi norms.
As per Sebi norms, a public sector listed company should have a minimum of 10 per cent public float by August 8, 2013. IDBI Capital Markets is acting as merchant banker for the share sale. The paid-up equity capital of the company, as on March 31, 2012, was Rs 490.58 crore.