Government to sell 20% in NFL, 10% in RCFL

NEW DELHI: The government will divest 20% stake in National Fertilizers (NFL) and 10% of its holding in Rashtriya Chemicals & Fertilizers (RCFL) through the offer for sale (OFS) route. It currently holds 75.71% stake in NFL and 75% stake in RCFL.

The department of investment and public asset management (DIPAM) has sought expressions of interest from merchant bankers for both divestment projects and legal advisers by May 5.

“The Government of India intends to disinvest 20% paid-up equity capital of NFL out of its shareholding of 74.71%, through ‘Offer for Sale’ (OFS) method of shares by promoters,” the department said in a notice inviting tenders issued April 12.

The government will also consider allotting shares to eligible and willing employees of NFL at a discount on the discovered price or the lowest cut off price, up to a maximum of certain percentage of the OFS size subsequent to completion of the OFS transaction.

Asset monetisation
Separately, DIPAM has sought financial bids from international property consultants by April 27, for monetising flats or apartments belonging to Hindustan Cables, located in Kolkata and Allahabad in two clusters. The department has sought similar financial bids by April 28, for monetising land or flats belonging to BEML, located in Mumbai, Kolkata, West Bengal and Chhatisgarh, in separate clusters.

The consultancy firms empanelled will be required to prepare feasibility reports in about three weeks for assets in each cluster allocated to them, provide end-to-end transaction advisory services and ensure completion of these transactions.