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 NFL 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 OFS would open for institutional investors tomorrow, while retail investors can put in their bids on 27 July, NFL said in a filing to BSE. The government currently holds 89.71% stake in NFL. 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.