New Delhi: the disinvestment process of national fertilisers is hotting up with the group of ministers on fertilisers approving the phased dismantling of the vintage subsidy structure for urea under the seventh and the eighth price mechanisms last week.
According to sources, based on the new norms, the reserved price for each NFL share is being calculated at rs 44-45 and the indicative valuation of its 51 per cent stake put on the block is expected to be rs 1,100 crore. the market is showing confidence in the scrip. the NFL stock price has been moving up since the gom’s announcement on fertilisers.
NFL stock price gained 19.7 per cent to rs 34.9 from rs 30 at nse. the scrip jumped to rs 26.25 from rs 23.15 on last thursday, and since then it has been moving up. there has been a delay in the sale of government’s stake in NFL , which was expected to be completed by march 31. now, sources said, the disinvestment of NFL will be through only by june end.
As the next step, they said, the government will invite financial bids after the cabinet clears the urea pricing norms. four companies — tata chemicals, indo-gulf corporation, chambal fertilisers and oswal chemicals — have shown interest in acquiring the 51 per cent stake.
The government owns 97.64 per cent stake in the company, remaining being held by the public and fis. for all these bidders, it makes sense to pick up a majority stake in NFL as that would give them a commanding market share. NFL has a strong presence in northern india.
Cornering NFL would give these players access to markets in punjab, uttar pradesh and himachal pradesh.
