Nagarjuna group denies promoters selling stake to RIL

The Rs 1,100-crore Nagarjuna Fertlisers and Chemicals Ltd (NFCL), yesterday categorically denied that the promoter group in the company were exiting the company and selling their stake to Reliance Industries Limited (RIL).

In a press release, issued by NFCL, the company said: "In the light of recent unfounded statement that the promoters are exiting from the company, NFCL clarifies that the present promoters continue to have full commitment towards the company and propose to carry forward the vision to make the company a major player in the plant nutrition business."

"The company is also proposing various steps to further increase the efficiency and has firmed up plans for entering into new areas to exploit the opportunities that are arising," the release added.

The promoters in the company have a 35.71 per cent stake, while the Andhra Pradesh government has a 4.67 per cent stake. Banks and financial institutions hold an additional 15.25 per cent stake while the rest is publicly held.

NFCL has gone through a turbulent time in recent years and its investments in Nagarjuna Oil Corporation Ltd, a company involved in setting up a six million tonne per annum oil refinery at Cuddalore in Tamil Nadu and Nagarjuna Power Corporation Ltd, a company involved in setting up a power plant in Mangalore in Karnataka, have not borne fruit.

NFCL had recently restructured its debt through the corporate debt restructuring cell and officials from the company point out that the power project is ready for implementation and has obtained all statutory approvals.