Government will take a decision on the proposal for 7.64% stake sale in National Fertilisers Ltd (NFL), which is expected to fetch around Rs 130 crore to the exchequer, tomorrow.
The Department of Disinvestment (DoD) has approached the Cabinet Committee on Economic Affairs (CCEA) for stake sale in the company through offer for sale (OFS) route.
Sources said the NFL stake sale would be discussed at the CCEA meeting tomorrow.
Four merchant bankers IDBI Capital Market Services, Avendus Capital, SBI Cap and Kotak Investment Banking were in fray for managing the stake sale of NFL.
The government plans to disinvest 7.64% stake, or over 3.74 crore shares of NFL in the domestic market.
At the current market price of Rs 34.50 apiece, the 7.64% stake sale could fetch around Rs 130 crore to the exchequer.
At present, the government holds 97.64% stake in NFL.
An inter-ministerial panel, headed by Disinvestment Secretary, had cleared NFL stake sale last month.
The paid-up equity capital of the company, as on March 31, 2012, was Rs 490.58 crore.
The stake sale in NFL is part of DoD's effort to meet the minimum 10% public shareholding norm as stipulated by market regulator Sebi for PSUs.
The government uses the OFS route, popularly known as auction method, to divest its stake in PSUs that come in top 100 companies in terms of market capitalisation. It has already used the route to sell stake in Oil India, NTPC, NMDC and Hindustan Copper during last fiscal.
The government proposes to raise Rs 40,000 crore by way of disinvestment in the current fiscal.
