New Delhi, June 28 (IANS) The Indian government will sell 7.64 percent of its stake in National Fertilizers Limited, which is expected to fetch nearly Rs.130 crore to exchequer, Finance Minister P Chidambaram said Friday.
The government currently controls 97.64 percent stake in the "Mini Ratna" company engaged in manufacturing and marketing of urea and other fertilizers.
Addressing a media conference here, Chidambaram said the government has decided to divest its stake in the company in order to comply with the market regulator Securities and Exchange Board of India (SEBI) norms.
As per the SEBI norms, government's shareholding in the listed public sector undertakings must come below 90 percent by Aug 8, 2013.
The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Manmohan Singh Thursday approved the proposal to divest 7.64 percent paid-up equity capital of the company that has nearly 3.74 crore shares.
Share price of National Fertilizers Limited rose 1.92 percent to Rs.34.55 at the Bombay Stock Exchange Friday.
At the current market price of Rs.34.55, disinvestment of 3.74 crore share would fetch Rs.129.21 crore to the exchequer.
National Fertilizers Limited is a Mini Ratna central public sector enterprises under the administrative control of the ministry of chemicals and fertilizers.
The company is engaged in manufacturing and marketing of urea, 16 industrial products and three types of bio-fertilizers from its five operating units located one each at Nangal and Bhatinda in Punjab, Panipat in Haryana and two units at Vijaipur in Madhya Pradesh.