The central government will sell its stake in National Fertilizers Limited (NFL) and Rashtriya Chemicals and Fertilizers (RCF) to meet the disinvestment targets for FY 2021-22. While the central government will sell its 20% stake in NFL, the government plans to sell 10% stake in RCF.
The government will sell its stake in these two companies through the offer for sale in this fiscal year itself. The Department of Investment and Public Asset Management (DIPAM) has sought bids from interested merchant bankers by May 5 to manage this proposed share sale.
Let us tell you that the government has 74.71% stake in NFL, while the government has 75% stake in RCF. The government will get Rs 500 crore from selling 20% stake in NFL. At the same time, selling 10% stake in RCF will fetch Rs 400 crore.
National Fertilizers Limited’s total profit after tax stood at Rs 198 crore in FY21. At the same time, the net worth of the company was Rs 2117 crore as of September 2020. National Chemicals and Fertilizers (RCF) had net profit of Rs 208.15 crore after paying tax in the financial year 2019-20. At the same time, the net worth of the company till March 2020 was Rs 3186.27 crore.