OIL, RCF and NFL to go under hammer

OIL, RCF and NFL to go under hammer

OIL, RCF and NFL to go under hammer

After an encouraging response from the NHPC stake sale, the government on Thursday announced it would go with divestment of three public sector enterprises — miniratnas Rashtriya Chemicals and Fertilisers (RCF) and National Fertilisers (NFL) and Navratna PSU Oil India (OIL).

The Department of Investment and Public Asset Management (DIPAM) has also invited bids from merchant bankers for the share sale.

The government will sell 5% of its stake in RCF and 15% in NFL, and it will sell 10% in OIL. The share sale of two fertiliser sector firms in 2016-17 that would raise about Rs 360 crore. OIL could fetch another Rs 1,900 crore to the exchequer at the current market price.

The government holds 89.71% shares in NFL, 80% in RCF and 67.64% in OIL.
Sources said that the government may also allot shares to employees of the three PSUs at a discount of up to 5%. The employees will be eligible to apply for shares up to Rs 2 lakh only.

This fiscal (2016-17), the government has set the disinvestment target of Rs 56,500 crore. It has all set to get Rs 2,700 crore from NHPC share sale, which concluded on Thursday, and was oversubscribed by institutional bidders.

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