The plans by Indian government to cut its stake in Rashtriya Chemicals and Fertilizers or RCF by the follow on share sale is planned in the 3rd or the 4th quarter in the next financial year starting April 2012. After the sale of the stake of the government the state run firm could further fall by around 12.5% to 17% from its existing 92%.
The process has been started as of now and the talks with the government in order to finalise the equity that needs to be sold is on. However still there are no such reports or announcement of the plans of the government regarding the total share it wants to sell.
The total market value of the firm for today is USD 810.2 million. The fertilizer based firm is also looking for exploring the possibility of setting up a new urea manufacturing unit in Ghana as well as Indonesia. These units are planned to be setup in association with the local partners of those countries. Since the start of 2011 the share price of the firm has fallen more than 28%. This Friday the Stock closed down by 2.3% at the price of Rs.72.8
Bell the Bull says: The stakes sale of the company can be a good opportunity to accumulate of a growing company i.e. RCF