The Cabinet Committee on Economic Affairs (CCEA) today approved the disinvestment of 7.64 percent paid up equity capital of the National Fertilizers Limited (NFL) that is approximately 3.74 crore shares, each of Face Value of Rs. 10/-. The disinvestment will be out of Government of India‘s (GOI`s) shareholding of 97.64 percent, as per the Securities and Exchanges Board of India (SEBI) rules and regulations in order to make the NFL compliant to public share holding requirements under the Securities Contracts (Regulation) Rules (SCRR). The paid up equity capital of the company as on 31.03.2012 is Rs. 490.58 crore that is approximately 49.05 crore equity shares, each of Face Value of Rs. 10/-.

NFL is a Scheduled `A` Mini Ratna Central Public Sector Enterprises (CPSE) under the administrative control of the Ministry of Chemicals and Fertilizers, and is engaged in manufacturing and marketing of urea, 16 industrial products and three types of bio-fertilizers from its five operating units. These are one each at Nangal and Bhatinda in Punjab, Panipat in Haryana and two units at Vijaipur in Madhya Pradesh.

Background:

The Company has been making a foray into diverse agri-based businesses. It has one Joint Venture namely Uravarak Videsh Ltd. with M/s RCF and M/s KRIBHCO with equity participation of 33.33 percent to explore investment opportunities abroad and within country in Nitrogenous, Phosphatic and Potassic sectors. It also renders consultancy services for setting up projects in India and abroad.

SC/NK/SKS

(Release ID :96849)

Public shareholding compliance: disinvestment of a minority stake in a central fertilizer company to meet regulatory public float requirements. Approval was granted for the disinvestment of 7.64 percent of the paid up equity capital of National Fertilizers Limited, representing approximately 3.74 crore shares, to be sold out of the Government of India's shareholding to achieve required public shareholding levels under securities regulation, thereby bringing NFL into compliance with public shareholding mandates; the company's paid up equity base is approximately 49.05 crore shares.