Chambal Fertilisers firms up on plans to divest non-core business

The company plans to sell one or more ships to fund the Ammonia-Urea project

Shares of Chambal Fertilisers were up nearly 2% at Rs 60.50 on the Bombay Stock Exchange after the company plans to sell ships to fund its Ammonia-Urea project.

"Keeping in view the long term shipping business outlook and the requirement of funds for new Ammonia - Urea Project proposed to be set up by the Company at Gadepan, Distt. Kota, Rajasthan, the Board of Directors has at its meeting held on December 22, 2015, subject to approval of shareholders, provided its in-principle consent for sale or disposal of one or more or all of the 5 ships," the company said in a release.

"Further, the board also made a recommendation to the shareholders of the Company for authorizing the Board of Directors to sell / dispose-off one or more or all vessels/ships or the entire shipping business/undertaking of the Company," the release added.

The stock opened at Rs 60.05 and touched a high of Rs 60.80. At 10:40am, over 630,000 shares were traded on both the stock exchanges.