Buzzing stock: National Fertilizers stock dips due to OFS by Government
The Government is selling its 15 percent stake in National Fertilizers Ltd. through a two day offer for sale which is beginning today. It currently holds 89.71 percent in the company.
The sale would be of 7.35 crore shares which would involve Rs 530 crore in the offer. The OFS is open for institutional investors for today, while retail investors can bid for the same tomorrow, i.e. on July 27, 2017. Retail investors will get the shares at discount of 5 percent to the cut-off price.
The floor price of the sale is at Rs 72.80. This is one of the biggest disinvestment plan of the Government for 2017-18.
The stock closed at Rs 78.85 on Tuesday. It opened today at Rs 73.80 and has shown a downside trend of 6.5 percent due to offer for sale proceeds.
Although revenues remained flattish in FY17, the company could maintain its margins at high levels as against its previous years. The operating profit margin stood at 7.25 percent and net profit margin at 7.8 percent.
National Fertilizers Ltd. is an agro based company engaged in the production and marketing of fertilizers, bio-fertilizers and other industrial products.