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RCF drops after fixing floor price of OFS at discount

Capital Market |  Jun 29, 2017 11:20 AM IST

Rashtriya Chemicals & Fertilizers dropped 4.53% to Rs 76.20 at 11:00 IST on BSE after the company fixed floor price for the government's offer for sale at Rs 74.25, a discount of 7.07% compared with close of Rs 79.90 yesterday, 28 June 2017.

The announcement of the offer for sale was made after market hours yesterday, 28 June 2017.

Meanwhile, the S&P BSE Sensex was up 187.84 points, or 0.61%, to 31,022.16. The S&P BSE Mid-Cap index was up 105.72 points, or 0.73%, to 14,608.41.

On the BSE, 5.3 lakh shares were traded in the counter so far, compared with average daily volume of 7.54 lakh shares in the past one quarter. The stock had hit a high of Rs 76.85 and a low of Rs 75.60 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 28 June 2017, falling 7.52% compared with 0.62% fall in the Sensex. The scrip had, however, outperformed the market in past one quarter, gaining 12.69% as against Sensex's 4.84% gains. The scrip also outperformed the market in past one year, gaining 73.13% as against Sensex's 16.25% gains.

The mid-cap company has an equity capital of Rs 551.69 crore. Face value per share is Rs 10.

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 will remain open today, 29 June 2017 for non-retail Investors and tomorrow, 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 shall be 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.

Data on NSE showed that the offer for sale received bids for 2.54 crore shares compared with offer of 2.2 crore shares at an indicative price of Rs 74.25 from the non retail investors today, 29 June 2017. The offer was subscribed 1.15 times.

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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