RCF offer: Subscribe only for long-term gains

Stock has gained on good monsoon hope; seems fairly priced at current levels

Fertilizers, Farmers

The government is selling a 5 per cent stake in Rashtriya Chemicals and Fertilisers (RCF), a mini-ratna company, through an offer for sale (OFS), in which retail investors can participate on Friday, June 30. Of the 27.58 million shares of a Rs 10 face value on offer, 20 per cent are reserved for retail investors, who will also get a 5 per cent discount on the cut-off price. The floor price has been set at Rs 74.25, which was around 7 per cent lower than RCF’s closing price of Rs 79.90 on Wednesday. Hence, it is not surprising that the stock corrected by 6 per cent to Rs 75.10 ...