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Rashtriya Chemicals and Fertilisers (RCF) shares lost more than 5 percent intraday Thursday as the offer for sale issue opened for subscription.
The two-day share sale began today with over 2.20 crore shares being sold to institutional investors while over 55 lakh shares have been reserved for retail investors who will get shares at an additional discount over the issue price.
Of its total shareholding of 80 percent in RCF, the government is selling over 2.75 crore share (representing 5 percent of total paid-up equity), at a floor price of Rs 74.25.
The floor price is at a discount of over 7 percent over Wednesday's closing price of Rs 80. The government will receive around Rs 200 crore through offer for sale.
The portion set aside for institutional investors oversubscribed 1.04 times within the first hour of trade today, with getting bids for 2.3 crore shares against 2.2 crore shares on offer, as per data available on the NSE.
RCF is the fourth disinvestment of the current fiscal, which began on April 1.
The government has already raised around Rs 6,600 crore through share sales this fiscal, of which Rs 1,207 crore from HUDCO IPO in May and Rs 1,192 crore from NALCO OFS in April. Besides, around Rs 4,200 crore raised through stake sale in L&T held through Specified Undertaking of Unit Trust of India (SUUTI) earlier this month.
For this fiscal, the government has set a target of Rs 46,500 crore through minority stake sale and Rs 15,000 crore from strategic disinvestment.
At 11:33 hrs Rashtriya Chemicals and Fertilisers was quoting at Rs 76.30, down Rs 3.60, or 4.51 percent.
Posted by Sunil Shankar Matkar
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