An Empowered Group of Ministers (EGoM) has
cleared the government's plan to sell 3.74 crore shares in National Fertilisers Ltd (NFL) through an offer for sale (OFS). The issue will hit the markets on Wednesday, July 31.
The base price for the OFS would be made public after the close of market hours on Tuesday. Sources said the price would be at a discount to the current market price.
"The EGoM today has cleared NFL offer for sale. The issue will hit the markets tomorrow," Disinvestment Secretary Ravi Mathur said.
The EGoM on disinvestment is headed by Finance Minister P Chidambaram.
The share sale is expected to fetch around Rs 100 crore to the exchequer at current market price. Shares of NFL were trading at Rs 27.40, down 7.90 per cent over previous close on Bombay Stock Exchange.
The paid-up equity capital of the company, as on March 31, 2012, was Rs 490.58 crore.
The Cabinet Committee on Economic Affairs (CCEA) had last month cleared the 7.64 per cent, or 3.74 crore share proposal.
The government holds 97.64 per cent stake in the company and the disinvestment is being done to make it compliant with the Securities and Exchange Board of India (Sebi) norms.
According to the market regulator's norms, a public sector listed company should have a minimum of 10 per cent public float by August 8, 2013.
The government uses the OFS route, popularly known as auction method, to divest its stake in PSUs that come under top 100 companies in terms of market capitalisation.
The government proposes to raise Rs 40,000 crore by way of disinvestment in the current financial year. So far in the current year it has raised over Rs 800 crore.
With inputs from PTI
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