Fact Hits Circuit On Selloff Buzz

The state-owned fertiliser major FACT on Friday got a major boost from hopes that the cabinet committee on disinvestment (CCD) will decide on its selloff.

During the early hours of trading, the scrip of FACT was locked at the 20 per cent upper circuit at Rs 38.90 to finally close the day at Rs 38.75, up 19.41 percent. A total of 2.17 lakh shares changed hands on the BSE today. In last four trading sessions between 24 May and 30 May, FACT rose 40.5 per cent to Rs 32.45 from Rs 23.10. In the same period, volumes jumped from 875 shares to 5,137.

 

One of the major issues of the meeting of the Cabinet Committee on Disinvestment was to consider the disinvestment of the government's 51 per cent stake in Fertilsers & Chemicals Travancore (FACT). The upsurge in the state-run fertiliser company is mainly on the reckoning that CCD may decide on its sell-off today.

FACT is the country's oldest fertiliser plant and has emerged as an efficient public sector unit.

Launched in the 1940s as a single-product fertiliser giant at Udyogamandal (near Cochin), Kerala, it has grown into a composite fertiliser giant with its design and consultancy unit (FEDO) and fabrication division, FACT Engineering Works (FEW).

FACT, which pioneered chemical fertiliser production in the country, nevertheless, had its ups and downs. By 1982-83, it had almost turned sick with accumulated losses of Rs 73 crore. In a major recovery effort launched in 1986, the company was put back on the rails. FACT diversified over the decades from fertilisers into petrochemicals, fabrication, engineering and design and consultation services. As on 31 December 2001, the government holding in FACT is around 97.65 per cent, while institutions and the public hold 1.63 per cent and 0.73 per cent, respectively.