New Delhi, April 18: Indian Farmers Fertilisers Co-operative Limited (Iffco), Chambal Fertilisers and Chemicals Limited, Tata Chemicals and Indo Gulf Corporation Limited are in the fray to pick up the 51 per cent stake in Rashtriya Chemicals and Fertilisers (RCF) that the Union government proposes to divest.
The Cabinet Committee on Disinvestment (CCD), which met on Tuesday, overruled the recommendations of the core group of secretaries to divest a 64.5 per cent stake in RCF. It decided to offer only 51 per cent in RCF to a strategic investor.
RCF is currently quoting at Rs 20.15, up Rs 2.15 or 11.94 per cent with a traded volume of 5,81,839 shares. Earlier, the RCF scrip had spurted on Friday itself, three days before the CCD meeting on the back of reports that the company would be privatised.
RCF is the largest gas-based fertiliser and chemicals manufacturer in the country, with an installed capacity of 1.16 million tonnes. It has manufacturing units at Thal in Raigad district of Maharashtra and Trombay near Mumbai. It produces nitrogenous, phosphatic, and potash fertilisers along with a wide range of industrial chemicals. Fertilisers contribute 80 per cent to its turnover.
For the third quarter ended December 2002, RCF reported a 138 per cent jump in net profit to Rs 26.21 crore. It posted a profit after a net loss of Rs 121.67 crore and Rs 11.80 crore recorded in the second and first quarters ended September and June 2002 respectively. The good third quarter results were mainly achieved due to higher sales growth. Net sales grew 18.5 per cent in this quarter to Rs 529.88 crore.
RCF plans to investment Rs 2,700 crore in the next three to five years to modernise its Trombay and Thal plants.