Govt approves 12.5% stake sale in RCF
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Continuing with its focus on disinvestment in public sector companies, the government on Wednesday approved a 12.5 per stake sale in Rashtriya Chemicals and Fertilizers.
"The Cabinet Committee on Economic Affairs (CCEA) has approved 12.5 per cent disinvestment in RCF," finance minister P Chidambaram said after the meeting.
A senior finance ministry official said that the stake sale, expected to raise Rs 360 crore, is not only aimed at generating resources to fund the fiscal deficit but also to meet market regulator Sebi's guidelines on minimum public float.
"It is a small issue and will not fetch much. The main aim is to increase its public shareholding in line with the Sebi norms," said the official, adding that a timeline for the disinvestment has not been finalised as of now. "Most probably, it will take place in 2013-14," he said.
The government currently holds 92.5 per cent stake in RCF, which has a paid up capital of Rs 551.69 crore. Following the CCEA decision, RCF shares gained 3.5 per cent and closed at Rs 57.60 on the BSE.
Under the Sebi guidelines, all listed PSUs must have 10 per cent public holding by August 2013.