Indian Central government will sell 20% stake in NFL and 10% stake in RCF, know how much amount will be collected from this sale

The central government is working on a plan to sell its stake in two companies to meet the disinvestment plan for the financial year 2021-22. Under this, the central government will sell some of its stake in National Fertilizers Limited (NFL) and Rashtriya Chemicals and Fertilizers (RCF). Where the government plans to sell its 20 percent stake in the NFL. At the same time, the government plans to sell 10 percent stake in RCF.

The government will sell its stake in these two companies only through the Offer for Sale (OFS) during the current financial year. The Department of Investment and Public Asset Management (DIPAM) has sought bids from interested merchant bankers till May 5 to manage this proposed share sale. Explain that the government’s stake in the NFL is 74.71 percent.

At the same time, the government has a 75 percent stake in RCF. The government will get around Rs 500 crore from selling a 20 percent stake in NFL. At the same time, selling a 10 percent stake in RCF will fetch Rs 400 crore.

The total profit after tax of National Fertilizers Limited has been Rs. 198 crores during the financial year 2020-21. At the same time, the net worth of the company till September 2020 was Rs 2,117 crore. National Chemicals and Fertilizers net profit after paying tax in FY 2019-20 was Rs 208.15 crore.

At the same time, the net worth of the company till March 2020 was Rs 3186.27 crore. Explain that the government is working on a plan to sell its stake in public sector companies to meet the necessary expenses and to limit its stake in some companies.