At the current market price of Rs 34.55, disinvestment of 3.74 crore shares would fetch Rs 129.21 crore to the exchequer
statesman news service
NEW DELHI, 28 JUNE: The Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister Manmohan Singh yesterday approved the proposal to divest 7.64 per cent paid-up equity capital of its stake in National Fertilisers Limited, which is expected to fetch nearly Rs 130 crore to the exchequer, finance minister P Chidambaram said today. The company has nearly 3.74 crore shares.
The government currently controls 97.64 per cent stake in the ‘Mini Ratna’ company engaged in manufacturing and marketing of urea and other fertilisers.
Addressing the media, Mr Chidambaram said the government has decided to divest its stake in the company in order to comply with the market regulator Securities and Exchange Board of India (Sebi) norms.
As per Sebi regulations, the government’s shareholding in listed public sector undertakings must come below 90 per cent by 8 August 2013.
At the current market price of Rs 34.55, disinvestment of 3.74 crore shares would fetch Rs 129.21 crore to the exchequer.
National Fertilisers Limited is engaged in manufacturing and marketing of urea, 16 industrial products and three types of bio-fertilisers from its five operating units located one each at Nangal and Bhatinda in Punjab, Panipat in Haryana and two units at Vijaipur in Madhya Pradesh.