FinMin invites bids for managing RCF stake sale

A day after getting Cabinet approval, the finance ministry on Friday invited applications from merchant bankers for managing the 12.5 per cent stake sale in state owned Rashtriya Chemcials and Fertilizers.

"The Government will select and appoint up to two merchant bankers with requisite experience in public offerings," the department of disinvestment (DoD) said in the Request for Proposal.

The RCF disinvestment is expected to raise Rs 360 crore and will be routed through the auction or offer for sale method.

The department has set a deadline of January 14 for receiving bids from interested merchant bankers, but officials said the stake sale is scheduled for the next fiscal. Shortlisted merchant bankers will be expected to make presentations to the DoD on January 17 and 18, after which financial bids would be opened.

"We want to have all systems in place to have a smooth sail with disinvestment issues," an official said, adding that the merchant bankers for RCF would be selected by January-end.

The government currently holds 92.5 per cent stake in RCF, which has a paid up capital of Rs 551.69 crore. Apart from raising resources to fund the fiscal deficit, disinvestment in RCF will also help it comply with market regulator Sebi's guidelines on minimum public float.

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