The retail portion of Rashtriya Chemicals & Fertilizers Ltd (RCFL) OFS got thumbs-up from retail investors. Against the 20% portion amounting to ₹ 40.96 cr reserved for retail investors, the total bids of ₹ 237.28 crore has been received, thus the retail portion got oversubscribed approximately by 5.62 times.

The Non Retail portion of the OFS opened on 29th June, 2017. Total subscription of ₹ 350.62 crore has been received against shares for value of ₹ 163.85 crore at floor price and oversubscribed by 2.14 times.

Overall, RCFL OFS for 5% divestment for equity shares of 27,584,405 amounting to ₹ 204.81 crore at the floor price of ₹ 74.25 per share, received a total demand for 7,82,00,420 equity shares amounting to ₹ 587.9 crore. Therefore, the OFS of RCFL over-subscribed by 2.83 times.

This is the 2nd CPSE OFS in the current financial year, and Government is likely to get ₹ 203 crore approximately. The Government shareholding in RCFL after this OFS will come down to 75%.

Offer-for-sale divestment results in marked oversubscription and a reduction in government shareholding after allocation. Offer-for-sale divestment by Rashtriya Chemicals & Fertilizers Ltd saw the retail tranche oversubscribed ~5.62 times and the non-retail tranche ~2.14 times, producing an overall subscription of ~2.83 times for a 5% equity divestment. The OFS attracted demand well above the floor-priced shares offered, and completion of the sale will reduce government shareholding in the company to 75%.