RCF gains on board nod to acquire stake in FCIL's Sindri unit

The board has approved acquisition of 11% stake in FCIL's Sindri unit

Shares of Rashtriya Chemicals & Fertilisers were up 3% at Rs 40 on the Bombay Stock Exchange after the board approved acquistion of minority stake in Food Corporation of India's Sindri unit.

The board at its meeting held on February 25, 2016 has in-principale approved to take a minimum of 11% equity stake in the revival of Sindri unit of Food Corporation of India Ltd by forming a new joint venture with other state-owned units, the company said in a release.

FCIL's Sindri unit is located about 20 kms away from the district headquarters of Dhanbad district in the State of Jharkhand.

The stock opened at Rs 40 and touched an intra-day high of Rs 41. At 11:10am, over 718,000 shares were traded on both the stock exchanges.