The Government raised Rs310 crore from sale of 12.5 per cent stake in Rashtriya Chemicals and Fertilisers ltd (RCF) in an offer for sale route, which got subscribed fully barely minutes before the markets closed. The auction got bids for over 7.94 crore shares against an offer of over 6.89 crore.
The indicative price, which is the weighted average price of all valid bids, was Rs 45.02 a share. At this price, the government would garner at least Rs310 crore.
The Government had fixed the floor price for the 12.5 per cent share auction of RCF at Rs 45 apiece, which is at a 2.6 per cent premium to Thursday's close of Rs43.85.
Shares of RCF closed at Rs 45.40, up 3.53 per cent from its previous close on BSE. The scrip had touched a high of Rs46.40 in early trade.
The Government holds 92.50 per cent stake in RCF. After stake sale, its holding will come down to 80 per cent.
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 is likely to raise Rs 24,000 crore through disinvestment in the current fiscal, lower than the budgeted Rs30,000 crore.
So far this fiscal, the government has raised over Rs21,500 crore through stake sale in PSUs like Oil India, NTPC, NMDC and Hindustan Copper ltd. 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.