RCF rises on fixing OFS floor price at premium

The floor price for offloading a 12.5% of the Centre's equity stake in RCF on Friday through offer for sale has been fixed at Rs 45 per share.

Rashtriya Chemicals and Fertilizers (RCF) is trading higher by 5.5% at Rs 46.30 in early morning trades after the government  fixed floor price for the proposed offer for sale (OFS) at Rs 45 per share, translating into a premium of 2.5% as compared to its Thursday’s closing price of Rs 43.90 on the National Stock Exchange (NSE).

“The floor price for offloading a 12.5% of the Centre’s equity stake in RCF on Friday through the OFS has been fixed at Rs 45 per share,” the company said in a regulatory filing.

The government is likely to raise between Rs 250 - 300 crore by divesting 68.9 million shares through the OFS route. Around 25% of RCF OFS may be kept reserved for funds and insurance companies, say reports.

The stock opened at Rs 44.60 and touched high of Rs 46.35 on the NSE. A combined 786,133 million shares have already changed hands on the counter on NSE and BSE at 0925 hours.