Finance ministry invites bid for NFL stake sale

Going ahead with stake sales in yet another public sector firm,the finance ministry on Tuesday invited bids from merchant bankers

Going ahead with stake sales in yet another public sector firm,the finance ministry on Tuesday invited bids from merchant bankers to manage a proposed disinvestment in state-owned National Fertilisers Ltd (NFL).

The government is considering to disinvest 7.64 per cent paid-up equity share capital of NFL comprising of 3,74,79,940 shares of face value of Rs 10 each, the finance ministry has said,seeking applications from investment banks for the transaction.

The disinvestment,which is likely to take place in the second quarter of the fiscal will be conducted through the offer for sale or auction route.

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NFL disinvestment needs to be completed by August this year so as to comply with Sebis minimum public shareholding norms, said a senior official,adding that the ministry will soon seek approval from the Union Cabinet for the stake sale.

At present,the Centre holds 97.64 per cent stake in the miniratna PSU.

Under Sebis regulations for minimum public float,the government will have to shed its stake in the NFL to 90 per cent by August this year.