New Delhi, Jan 3 (IANS): The Union Government plans to sell 10 per cent stake in Rashtriya Chemicals and Fertilisers Ltd (RCFL) through offer for sale (OFS).

The Department of Investment and Public Asset Management has sought bids from law firms to act as legal advisers and assist the government in the process.

A domestic law firm will act as the legal adviser to the transaction and submit proposals in a consortium with an international law firm of repute, with similar experience and expertise in public offerings or OFS in capital markets, DIPAM said in a notice.

The Centre currently holds 75 per cent stake in the public sector undertaking (PSU).

The notice said: "The GoI intends to disinvest 10 per cent paid up equity capital of RCFL out of its shareholding of 75.0006 per cent, through 'Offer for Sale (OFS) method of shares by promoters through the stock exchanges' as per Securities and Exchange Board of India (SEBI) Rules and Regulations."

The government is also considering allotting shares to eligible and willing employees of the RCFL at a discount on the issue or discovered price up to a maximum of certain percentage of the OFS size subsequent to completion of the transaction under OFS.

The percentage and extent shall be decided in due course. The notice also said that merchant bankers or selling brokers will be required to render such assistance.

Rashtriya Chemicals & Fertilisers Ltd is a Mini-Ratna fertiliers and chemicals manufacturing company under the administrative control of Ministry of Chemicals and Fertilisers.

It has two operating units, one at Trombay in Mumbai and the other at Thal in Maharashtra's Raigad district, about 100 km from Mumbai. RCFL manufactures urea, complex fertilisers, bio-fertilisers, micro-nutrients, 100 per cent water soluble fertilisers, soil conditioners and a wide range of industrial chemicals.

The authorised share capital of the company is Rs 800 crore and the paid-up equity capital is Rs 551.69 crore as on March 31, 2020.