Rashtriya Chemicals and Fertilisers FPO: State-owned Rashtriya Chemicals and Fertilizers Ltd. (RCF) has approved raising up to ₹1,500 crore through a Further Public Offering (FPO) of fresh equity shares, marking one of the company’s biggest fundraising initiatives in recent years.
Following the announcement, the fertiliser stock jumped 2.4% to its day’s high of ₹134.55 on BSE. It has added 8.5% in 1 month and 6.5% in 3 months; however, it shed 6% in last 6 months and 13% in 1 year.
The proposal, cleared by the company’s board on July 7, 2026, is subject to approvals from shareholders, the Department of Fertilizers, Government of India, and the Department of Investment and Public Asset Management (DIPAM).
Alongside the fundraising proposal, the board also approved amendments to the company’s Memorandum of Association (MoA) by expanding its main object clauses to allow entry into several new business areas, including renewable energy, water management, agrochemicals, warehousing and logistics, subject to the necessary approvals.
“The Board at its meeting held today i.e., July 7, 2026 has considered and approved… raising of funds by way of a Further Public Offering through a fresh issue of Equity Shares by the Company aggregating up to Rs. 1,500 Crore… subject to receipt of the approval of the shareholders of the Company, Department of Fertilizers, Government of India and Department of Investment and Public Asset Management (DIPAM),” the company said in its stock exchange filing.
Other board meeting details
As part of the proposed changes, RCF plans to significantly broaden the scope of its business by revising and expanding the main object clauses of its Memorandum of Association.
The company will rename the existing object clauses under the Companies Act, 2013, merge the existing “Other Objects” into the main business clauses and increase the number of principal business objects from two to ten by inserting new clauses and reclassifying several existing ones.
Among the new and modified business activities, RCF has proposed to enter the generation, transmission, distribution and sale of power from renewable, conventional and non-conventional energy sources, including waste heat recovery systems.
The company also plans to establish and operate sewage treatment plants (STPs), effluent treatment plants (ETPs), water purification, recycling and wastewater management systems, while dealing in treated and recycled water and promoting sustainable water management.
The revised objects further enable the PSU to manufacture, process, import, export and trade explosives, industrial explosives, ammunition and fireworks, subject to applicable regulations. In addition, RCF intends to expand into manufacturing and marketing agro-based products, agrochemicals, organic and innovative fertilisers, bio-fertilisers, pesticides, insecticides, herbicides, fungicides, weedicides, rodenticides, seeds, plant nutrients, compost, manure, plant growth regulators, bio-stimulants, micronutrients and bio-based crop protection products.
Moreover, the proposed amendments allow RCF to act as agents and distributors for governments and statutory authorities, promote and invest in businesses related to fertilisers, chemicals, sustainable agriculture solutions, renewable energy and environmental engineering, and commercially exploit intellectual property, patents, trademarks and proprietary technologies relating to its businesses.
RCF has also proposed provisions allowing it to acquire land, factories, warehouses, machinery and other assets required for its businesses. The company plans to establish warehouses, cold storages, godowns and logistics parks, lend funds to subsidiaries and joint ventures, and promote wholly owned subsidiaries and joint ventures engaged in fertilisers and related businesses. It further intends to operate various banking accounts required for business operations.
In addition, the amended Memorandum of Association would enable RCF to manufacture and trade a wider range of business-related products, establish training institutions for skill development, invest in companies with similar businesses, monetise operational assets through structures such as Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), invest surplus funds, raise money through various securities including bonds and debentures, undertake treasury and hedging activities, and acquire or hold shares and electricity-related infrastructure businesses.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
