Rashtriya Chemicals and Fertilizers gained 1.73% to Rs 76.40 at 15:00 IST on BSE after the offer for sale of stake by the government received good response from the investors.
The announcement of the offer for sale was made after market hours on 28 June 2017. The stock had slumped 6.01% to Rs 75.10 yesterday, 29 June 2017.Meanwhile, the S&P BSE Sensex was up 41.69 points, or 0.14%, to 30,899.21. The S&P BSE Mid-Cap index was up 32.10 points, or 0.22%, to 14,584.59.
On the BSE, 7.03 lakh shares were traded in the counter so far, compared with average daily volume of 7.61 lakh shares in the past one quarter. The stock had hit a high of Rs 76.95 and a low of Rs 74.60 so far during the day. The stock had hit a 52-week high of Rs 99.75 on 15 May 2017. The stock had hit a 52-week low of Rs 40.50 on 21 November 2016.
The stock had underperformed the market over the past one month till 29 June 2017, dropping 13.18% compared with 0.81% fall in the Sensex. The scrip had, however, outperformed the market in past one quarter, gaining 5.4% as against Sensex's 4.49% gains. The scrip had also underperformed the market in past one year, gaining 59.96% as against Sensex's 15.4% gains.
The mid-cap company has an equity capital of Rs 551.69 crore. Face value per share is Rs 10.
On the second day of the bidding for offer for sale (OFS) today, 30 June 2017, as at 14:45 IST, bids were received for 1.96 crore shares from the retail investors, representing a subscription of 355.29%. The OFS received good response from non-retail investors' category too. The non retail investors category, who chose to carry forward their bids today, 30 June 2017 from the first day, saw an oversubscription of 228.62%. Non retail category was subscribed 213.88% on the first day of bidding yesterday, 29 June 2017 at an indicative price of Rs 74.29.
Rashtriya Chemicals & Fertilizers said that government, the promoter of the company announced its intention to sell up to 2.75 crore equity shares of the company of face value of Rs 10 each, representing 5% of the total paid up equity share capital of the company. The offer for sale remained open yesterday, 29 June 2017 for non-retail Investors and today, 30 June 2017 for retail investors and for non-retail Investors who choose to carry forward their bids through the separate window provided for the purpose on the stock exchanges.
The floor price for the offer was fixed at Rs 74.25 per equity share of the company.
Further upto 5% of the offer shares over and above the number of offer shares could be offered to eligible and willing employees of the company at a discount of upto 5% of the cut-off price subsequent to completion of the offer.
Rashtriya Chemicals and Fertilizers' net profit rose 36.4% to Rs 55.09 crore on 10.9% rise in net sales to Rs 2209.36 crore in Q4 March 2017 over Q4 March 2016.
State-run Rashtriya Chemicals and Fertilizers (RCF) is one of the leading producers of urea in India. The Government of India (GoI) currently holds 80% stake in RCF (as per the shareholding pattern as on 31 March 2017).
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