NFL disinvestment approved

The sale may to fetch Rs 125 cr to govt

CCEA also approved disinvestment of 7.6 per cent of government stake in National Fertiliser Ltd (NFL). The sale is expected to fetch Rs 125 crore to the government, which currently holds 97.6 per cent stake in the company. Last month, an Inter-ministerial Group had approved the stake sale in NFL by way of offer for sale. The divestment of stake will help the government meet the minimum 10 per cent public shareholding norm as stipulated by market regulator Securities and Exchange Board of India for public sector units. NFL has an annual installed production capacity of 3.56 million tonnes of urea. It is engaged in manufacturing and marketing of complex fertilisers and other agri products.

IDBI Capital Market Services, Avendus Capital, SBI Cap and Kotak Investment Banking were in the fray for managing the stake sale of NFL.

The government is planning to raise Rs 40,000 crore by way of disinvestment in the current financial year. Despite opposition from workers’ unions, it is going ahead with a 10 per cent stake sale in Coal India which might fetch it Rs 20,000 crore—half of its target from disinvestment proceeds this year.

The Cabinet has already given the nod for the five per cent stake sale in Neyveli Lignite, which would help garner Rs 466 crore for the exchequer.

This year’s disinvestment programme kicked off a fortnight ago with 9.3 per cent stake sale in MMTC through the Offer for Sale route. The issue was oversubscribed by 1.5 times, fetching the exchequer Rs 568 crore. It received participation from financial institutions, retail investors and some foreign institutional investors.

Decks have been cleared for Indian Oil Corporation (IOC) disinvestment, with the petroleum ministry giving its nod for the issue. The Department of Disinvestment has moved the Cabinet for selling 10 per cent shares in IOC to raise Rs 7,000 crore. Stake sale is likely in IOC, Hindustan Aeronautics, and Bharat Heavy Electricals Limited this year.

The disinvestment target last year was Rs 30,000 crore, but the government could raise only Rs 25,000 crore.