Govt considering 10% stake sale in National Fertilisers

New Delhi: The government is considering disinvestment of a 10 percent stake in state-run National Fertilisers Ltd (NFL) through which it plans to mop up about Rs 100 crore.

"The Department of Disinvestment has proposed to dilute 10 percent stake in NFL. We expect it would help in raising about Rs 100 crore from the market," a fertiliser ministry source said.[caption id="attachment_332072" align="alignleft" width="380" caption="Selling stake. Reuters"][/caption]

The proposal to divest the stake is currently under consideration of the fertiliser, finance and other related ministries, the source added.

The government at present owns 97.64 percent in NFL.

Based on today's closing share price of Rs 80.45 a piece, the company's market capitalisation is Rs 3,946 crore.

NFL had reported a net profit of Rs 126.73 crore in the last fiscal as against a net profit of Rs 138.50 crore in the 2010-11 fiscal.

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It had posted a total income of Rs 7,309.93 crore as compared to a total income of Rs 5,801.87 crore in the same period.

Shares of the company today rose by 5.58 per cent to settle at Rs 80.45 a piece from its previous close at the BSE.

The government has fixed a target of Rs 30,000 crore from disinvestment of Central public sector enterprises (CPSEs) in the current fiscal.

In the last fiscal, against a target of Rs 40,000 crore, owing to volatile stock market conditions, the government could mop up only Rs 14,000 crore.

PTI