RCF share sale gets bids worth Rs 588 cr, to fetch Rs 203 cr

The 5 per cent share sale of fertiliser firm RCF witnessed strong investor response with bids worth Rs 588 crore and retail investors lapped up more than 5 times the shares reserved for them.
The government sold over 2.75 crore shares to retail and institutional buyers over the two-day OFS at a floor price of Rs 74.25 a share. The share sale would fetch Rs 203 crore to the exchequer.
"Overall, RCF OFS received a total demand for 7.82 crore equity shares amounting to Rs 587.9 crore. Therefore, the OFS of RCFL over-subscribed by 2.83 times," a finance ministry statement said.

As against shares amounting to Rs 40.96 crore reserved for retail investors, the total bids of Rs 237.28 crore has been received, thus the retail portion got oversubscribed approximately by 5.62 times.
Institutional investors, which put in bids yesterday, had put in subscription for Rs 350.62 crore as against shares worth Rs 163.85 crore reserved for them.
The government stake in RCF after this OFS will come down to 75 per cent.

Shares of RCF closed at Rs 75.65, up 0.67 per cent over previous close on the NSE.
RCF is the fourth disinvestment of the current fiscal, which began on April 1.

The government has already raised around Rs 6,600 crore through earlier three share sales this fiscal. Of this, Rs 1,207 crore have come from initial public offering of HUDCO in May and Rs 1,192 crore through NALCO OFS in April.
Besides, around Rs 4,200 crore have been raised through stake sale in L&T held through Specified Undertaking of Unit Trust of India (SUUTI) earlier this month.
For this fiscal, the government has set a target of Rs 46,500 crore through minority stake sale and Rs 15,000 crore from strategic disinvestment.