RCF Raises ₹300 Cr via NCDs—Strengthens Balance Sheet Amid Fertilizer Headwinds

Rashtriya Chemicals and Fertilizers Ltd (RCF) has successfully raised ₹300 crore through the allotment of 30,000 nonconvertible debentures (NCDs) on a private placement basis. The move comes as the company looks to bolster its financial flexibility amid volatile input costs and margin pressures in the fertilizer sector.

 

Instrument Details:

RCF issued 7.99% listed, unsecured, redeemable, noncumulative, taxable NCDs, each with a face value of ₹1 lakh. The bonds are set to mature in three years, offering investors a stable fixedincome option.

 

Strategic Intent:

The funds are expected to support working capital needs, debt refinancing, and general corporate purposes, as the company navigates a challenging operating environment.

 

Recent Financials:

In Q1 FY25, RCF reported an 84% YoY drop in net profit to ₹10.8 crore, despite an 8.7% rise in revenue to ₹4,396 crore. The sharp decline was attributed to higher expenses and lower fertilizer margins.

 

Market Position:

RCF remains one of India’s top urea producers, with a 6% market share, and operates two major plants in Maharashtra. The Government of India holds a 75% stake in the company.

Investor Confidence:

 

The successful NCD issuance reflects continued market trust in RCF’s creditworthiness, backed by its diversified product mix and strategic importance in India’s agriinput ecosystem.

 

Sources: Capital Market, Business Standard, India Ratings