EGoM to meet tomorrow on RCF stake sale

New Delhi: The Empowered Group of Ministers (EGoM), headed by Finance Minister P Chidambaram, is likely to meet tomorrow to decide on 12.5 percent stake sale in RCF, which could fetch around Rs 300 crore to the exchequer.

Sources said EGoM is likely to take a decision on the base price for selling stake in Rashtriya Chemicals and Fertilisers (RCF). Following that, the issue is likely to hit the market on Friday, they added. The Finance Ministry is considering sale of 12.5 per cent stake or 6.89 crore shares in the company through the Offer For Sale (OFS) route.

[caption id=“attachment_649344” align=“alignleft” width=“380”] The RCF stake sale would help the government inch closer to the disinvestment target for the current fiscal. Reuters[/caption]

The RCF scrip closed at Rs 44.30, down 0.89 percent on the BSE. The government holds 92.5 percent stake in RCF and the paid up capital of the company is Rs 551.69 crore. The Cabinet had in December approved the stake sale of RCF.

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The RCF stake sale would help the government inch closer to the disinvestment target for the current fiscal. As per the revised estimates, the government would raise Rs 24,000 crore through disinvestment in the current fiscal, lower than the budgeted Rs 30,000 crore.

So far this fiscal, it has raised over Rs 21,500 crore through PSU stake sale. In the remaining weeks of the fiscal ending March 31, the Finance Ministry plans to sell stake in three more companies-MMTC, SAIL and NALCO.

PTI