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National Fertilizers falls 7% on discounted floor price for OFS

The floor price is at a discount of 7.67% over Tuesday's closing price of Rs 78.85 on the BSE

SI Reporter  |  Mumbai 

National Fertilizers
National Fertilizers

(NFL) dipped 7% to Rs 73.35 on BSE in early morning trade on Wednesday after the company fixed floor price for the government's offer for sale at Rs 72.80. The floor price is at a discount of 7.67% over Tuesday’s closing price of Rs 78.85 on the BSE. The government has launched offer for sale (OFS) for through a two-day offer for sale beginning from today, in order to divest 15% stake in the company. The sale of 73.5 million shares or 15% stake would fetch about Rs 530 crore to the exchequer. The would open for institutional investors tomorrow, while retail investors can put in their bids on 27 July, said in a filing to BSE. The government currently holds 89.71% stake in Retail investors will be allocated offer shares at the discounted price i.e. at a discount of 5% to the cut-off price.

The discounted price, which shall be final allocation price to retail investors, may be below the floor price, it added. At 9:30 am, the stock was down 6% at Rs 74.30 on BSE, as compared to 0.23% rise in the S&P BSE Sensex. A combined 639,794 shares have changed hands on the counter (BSE +NSE) so far.

First Published: Wed, July 26 2017. 09:35 IST