Centre plans to sell 20 per cent stake in National Fertilizers Ltd (NFL) through 'offer for sale'.
The Department of Investment and Public Asset Management (DIPAM) has invited tenders from law firms with experience and expertise in public offerings and OFS in capital markets to act as legal advisers and assist the government in the process. It has also sought tenders from merchant bankers for the sale process.
"The GoI intends to disinvest 20 per cent paid up equity capital of NFL out of its shareholding of 74.71%, through 'Offer for Sale' (OFS) method of shares by promoters through the stock exchanges' as per Securities and Exchange Board of India (SEBI) Rule and Regulations," said a notification by the department.
Further, the Centre is also considering allotting shares to eligible and willing employees of NFL at a discount on the issue or discovered price -- lowest cut off price -- up to a maximum of certain percentage of the OFS size subsequent to completion of the transaction under OFS. The percentage and extent shall be decided in due course.
The deadline for submission of bids for both legal adviser and merchant banker for the OFS ends at 3 p.m. on March 2.
Incorporated on August 23, 1974, National Fertilizers is a Mini Ratna company with an authorised capital of Rs 1,000 crore and a paid-up capital of Rs 490.58 crore out of which Government of India (GoI) holds 74.71 per cent shares and 25.29 per cent shares are held by financial institutions and others.
The company employed 3,339 regular employees as on March 31, 2020.
It has five gas-based ammonia-urea plants -- Nangal and Bathinda plants in Punjab, Panipat plant in Haryana and two plants at Vijaipur (District Guna), in Madhya Pradesh.
Around 12.30 p.m., shares of NFL on the BSE were trading at Rs 41.75, higher by 2.20 per cent from its previous close.