The state-run fertiliser maker said the fundraise will be carried out through a fresh issue of equity shares, with the proceeds to be raised via an FPO.
An FPO, or Further Public Offering, is a follow-on share issue by a company that is already listed on the stock exchanges. Unlike an initial public offering (IPO), which marks a company’s stock market debut, an FPO enables an already listed company to raise additional capital by issuing new shares to investors.
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Alongside the fundraising plan, the board also approved amendments to the company’s Memorandum of Association (MoA) to broaden its business objectives, subject to shareholder approval and clearance from the Department of Fertilizers.
The proposed changes would allow RCF to expand into businesses such as sewage and effluent treatment plants, water purification and recycling systems, renewable and conventional power generation, industrial explosives, agrochemicals and bio-fertilisers.
The revised objectives also include warehousing and logistics facilities, renewable energy, sustainable agriculture solutions, and the incorporation of subsidiaries and joint ventures for related businesses.
The company also plans to update and reorganise several existing clauses in its Memorandum of Association to align them with the provisions of the Companies Act, 2013.
Shares of the company jumped from the day’s lows to close nearly 2% higher at ₹133.01 on Tuesday. The stock has declined about 9% so far this year.
