National Fertilisers spurts on fresh bid call

DALAL STREET SPIKES

National Fertilisers stock spurted 6.11 per cent in Monday's trading on reports that the government has decided to call fresh bids for sale of 51 per cent equity in the company.

The stock in the intra-day trades touched a high of Rs 38.50 before closing at Rs 34.75. The counter witnessed volumes of 31,551 shares at the Bombay Stock Exchange. Fertiliser majors such as Indo-Gulf Fertilisers, Kribhco and Chambal Fertilisers are in race to acquire government's 51 per cent stake in National Fertilisers.

Earlier, the disinvestment of NFL was called off as bids received by the three candidates were below the reserve price. The government currently holds 97.64 per cent stake in NFL. According to reports, in the fresh bid, the bidders have been told not to provide any bank guarantees.

NFL reported a dismal third quarter result in December 2003. The net profit fell by 71 per cent to Rs 24.57 crore as against Rs 84.20 crore on a 9.5 per cent drop in total income to Rs 1,075.78 crore.