Winning Bizness Desk

Mumbai. The central government has accelerated the disinvestment process of government companies and in this process, the privatization of 8 government companies engaged in the manufacture of fertilizers has got the green signal in the meeting of NITI Aayog. This meeting took place three weeks ago. According to a report, the government has completed the strategic disinvestment of 8 fertilizer companies including Rashtriya Chemical Fertilizer (RCF), National Fertilizer Limited (NFL) and Fertilizer and Chemical Travancore Limited (FACT).

A part of new disinvestment policy

Under the new disinvestment policy, the government has decided to disinvest these companies. The Department of Public Enterprises has also recommended disinvestment of these companies. The government has a 75 percent stake in National Chemical Fertilizers (RCF), about 74 percent in National Fertilizers Limited (NFL) and 90 percent in Fertilizers and Chemicals Travancore Limited (FACT).

What are those companies?

The fertilizer companies identified by the government include 8 companies including RCF, NFL and FACT. Apart from these three, Madras Fertilizers, Fertilizer Corporation of India, Hindustan Fertilizer Corporation have also been included in the list of disinvestment. RCF mainly manufactures Urea and Complex Fertilizers. NFL manufactures Neem Coated Urea and Bio Fertilizer.

Stocks soared up

Shares of National Fertilizer Limited (NFL) have witnessed an initial rise on Tuesday. In the intraday, the company's shares were trading at 52.70 percent with a gain of 2.33 percent on the NSE. At the same time, the shares of Fertilizer and Chemical Travancore Limited (FACT) rose up to 5 percent and once this stock reached Rs 129.75. At the time of writing the news, the share of FACT was trading at Rs 126.75 with a gain of 3.43 per cent on NSE. Similarly, the stock of National Chemical Fertilizer (RCF) also jumped by nearly 3 per cent to Rs 103.70 on Tuesday.