The scope of the contract includes detailed engineering, manufacture, supply, construction, erection, commissioning and a guarantee run for the Ammonia plant revamp, with the objective of reducing specific energy consumption.
The order does not involve any interest of RCF’s promoter, promoter group or group companies in the entity receiving the order. The company also said the contract does not fall under related-party transactions.
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Back in July this year, the Rashtriya Chemicals and Fertilizers board approved raising up to ₹1,500 crore through a Further Public Offering (FPO), subject to approvals from shareholders, the Department of Fertilizers and the Department of Investment and Public Asset Management (DIPAM).
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.
Shares of Rashtriya Chemicals and Fertilizers Ltd ended at ₹109.00, up by ₹0.60, or 0.55%, on the BSE.
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