Expect 12.5% divestment in RCF by Q4 FY13 via OFS: Rajan

RG Rajan, CMD, Rashtriya Chemicals and Fertilisers (RCF), says that he expects disinvestment in the company to happen in the last quarter of this financial year and via OFS. We are still waiting for final communication from the government.

Below is the edited transcript of his interview to CNBC-TV18.

Q: There were expectations that over the weekend the Union Cabinet would decide on whether or not to divest 12.5 percent stake in your company. Has any final decision been reached and communicated to you in terms of how soon it will be done and what instrument will be used?

A: I think disinvestment will be done in the last quarter of this financial year and via OFS. We are still waiting for final communication from the government.

Q: What would be the size of the OFS?

A: It would be 12.5 percent of the equity.

Q: Are you planning to raise capital as well as the government goes ahead and sells its stake, do you have any plans of making any offerings?

A: No, we have no plans of making any offerings.

Q: Now, as the new fertilizer policy is on track what is the existing capacity that you have and what is the new capacity that is lined up which is contingent on the new policy?

A: Our current capacity is 2.3 million tonnes for urea and 0.7 million tonnes for NPK at our two plants. We have lined up an investment proposal at Thal for 1.3 million costing around Rs 4100 crore. This project is on the advanced stages and we hope that the zero date will be in the first quarter of the next financial year.

watch for more...