Rashtriya Chemicals and Fertilizers (RCF) OFS at 5% discount – Should you invest?

Rashtriya Chemicals and Fertilizers OFS at discount - Should you investRashtriya Chemicals and Fertilizers (RCF) OFS at 5% discount – Should you invest?


Rashtriya Chemicals and Fertilizers (RCF), Offer for Sale (OFS) would open on Thursday i.e. 29th June, 2017 for non retail investors and on 30th June for retail investors (for 1 day). Rashtriya Chemicals and Fertilizers is a Minirathna Government Company. The government is selling 27.5 million shares or 5% stake, in a public offer through offer for sale (OFS) or auction route. Rashtriya Chemicals and Fertilizers share price was at Rs 79.9 on Wednesday, at the BSE and Govt. of India has fixed the floor price at Rs 74.25 (8% less from Wed price). Retail investors would get a 5 % discount on floor price. Should you invest in Rashtriya Chemicals and Fertilizers OFS? How is the share price performed in the last 1 year.

Also Read: AU Small Finance Bank IPO – Should you invest?

Details of Rashtriya Chemicals and Fertilizers OFS


  • Rashtriya Chemicals and Fertilizers Ltd Offer for Sale (OFS) would open for 2 days for non retail investors (29th and 30th June) and 1 day for retail investors (30th June, 2017).
  • It would open at 9:15 am and closes at 3.30pm through separate windows of BSE and NSE.
  • Rashtriya Chemicals and Fertilizers share price has closed on Wednesday at Rs 79.9 per share at BSE.
  • Govt of India has fixed the floor price at Rs 74.25 which is 8% lower than Wed’s share price through its announcement to BSE.
  • Retail investors would get the discount of 5% on floor price. Means, they would get shares at Rs 70.5 per share.
  • Govt of India is planning to sell overall 5% stake for which it would get approx. Rs 200 Crores.
  • 20% of such shares are reserved for retail investors.
  • Retail investors can apply through their stock brokers / demat account for this OFS.

What is the purpose of the Rashtriya Chemicals and Fertilizers Offer for Sale (OFS)?


Govt. Of India plan to divest in several PSU companies. Minority stake sale happens through Offer for Sale (OFS).Company would not get any money out of this OFS for business purpose.

How do you get a 5 % discount through this OFS?


Govt of India has fixed the floor price at Rs 74.25 which is 8% lower than Wednesday’s share price. Retail investors would get the discount of 5% on floor price, i.e. effective price is Rs 70.5 (approx.). When you apply through your demat account, you would be tagged as retail investors and discounted price would be automatically shown to you. If not, please contact your demat stock broker before applying. You cannot make any changes once you apply for that.

How is Rashtriya Chemicals and Fertilizers stock price in last 12 months?


On Wednesday, 29th June, 2017, Rashtriya Chemicals and Fertilizers stock price closed at Rs 79.9, up by 3% for the day.

  • The 52-week high of the share was Rs 100 and the 52-week low was Rs 40.
  • In the last 1 month, it touched high of Rs 88.5 and low of Rs 77.8.
  • Even in last 1 week, it was as high as Rs 84.3 and low of Rs 77.8.
  • Some of the stock market experts like Ashwani Gujral and Mitesh Thakkar has recommended this stock to BUY in the last couple of months.

Also Read: Best Small cap Mutual Funds to invest in 2017

Should you invest in RCF Offer for Sale of 2017?


If you want to make money in short term for 5% to 20% by taking risk, you can subscribe to RCF OFS. Don’t expect this stock to be multi bagger. However this stock can provide moderate returns in medium to long term.

Disclaimer: I am not holding these shares as on 29th June, 2017, however I have an intention to apply for this OFS. 

If you like this article, please share this on your Facebook or Twitter. This would be a special gift which you would be giving to our blog.

Suresh

Rashtriya Chemicals and Fertilizers OFS at 5% discount

21 comments

  • Mohan

    Can anybody tell the tentative date of allotment of shares?

    • Shashank Venkat

      Have shares been allotted to you yet? The money got deducted from my account but no allotment or refund still. 

  • Uday

    Suresh, one quick question. Is OFS is also like IPO? Will they take any lottery as such and allot shares? Is there any maximum number of shares we can apply? When can we expect RCF allotment? 

  • Surya

    Hi , I have applied for OFS through icicidirect.com but the price which was showing is 74.25.

    Is that the price which a retail investor should buy or any other price as per your analysis it should be 70.5 approx but it was  not showing in the account .

    I have already applied for it and what is the price i may get if allotted and how do we change this price now as per the govt discount .

     

Leave a Reply

Your email address will not be published. Required fields are marked *