GoI invites merchant bankers for OIL, NFL, RCF

The Government of India today invited bids from merchant bankers to assist in its stake sale in three PSUs—Navratna Oil India Ltd. (OIL), National Fertilizer Ltd. (NFL) & Rashtriya Chemicals & Fertilizers Ltd. (RCF)—expected to fetch INR2,260 cr. to the exchequer.

The intended sale includes 10% of OIL, or 6.01 crore shares; 15% stake or 7.35 crore shares ofNFL, and 5% or 3.75 crore equity shares in RCF.

At current market price, this translates to over INR1,900 cr for OIL, INR230 crore in NFL and INR130 crore in RCF.

GoI plans to appoint three merchant bankers for OIL, and two merchant bankers each of NFL & RCL, who would have apply to the Department of Investment & Public Asset Management by May 18.

The government is also considering allotting shares to employees of the three PSUs at a discount of up to 5 per cent to the issue. The employees will be eligible to apply for shares up to Rs 2 lakhs only.