India govt raises $57m in Rashtriya Chemicals & Ferts share sale

08 March 2013 14:37  [Source: ICIS news]

LONDON (ICIS)--India’s government has raised around India rupees (Rs) 3.1bn ($56.8m) through the sale of a 12.5% stake in Rashtriya Chemicals and Fertilizers (RCF), according to an announcement on India’s Bombay Stock Exchange (BSE) on Friday.

The Ministry of Chemicals and Fertilizers put nearly 69m shares up for sale on the bourse on Friday, with the offer closing at 15:30 local time (12:00 GMT). The sale was 1.3 times oversubscribed, with shares selling for an average indicative price of Rs45.02, compared to the government’s minimum offer price of Rs45.00, according to BSE data.

Following the sale of the shares, which had a face value of Rs10 apiece, the government’s shareholding in the company will be reduced to 80%.

The divestment is part of a government campaign of fundraising and deficit reduction through the sale of partial stakes in state-owned companies.

($1 = Rs54.57)

By: Tom Brown
+44 208 652 3214

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