The share price of Rashtriya Chemicals and Fertiliser (RCF) surged by more than 8% in early trading on October 10 following the company’s decision to grant L&T a contract for the construction of a 1200 MTPD complex fertiliser plant on a lump sum turnkey (LSTK) Basis at RCF, Thal.

Rashtriya Chemicals and Fertilizers Ltd (RCF), a state-owned company, announced on October 9 that its board of directors had approved a purchase order with Larsen & Toubro Ltd to build a 1200 MTPD (DAP basis) complex fertiliser plant at its Thal facility.

The project will be implemented on a lump-sum turnkey (LSTK) basis and is estimated to be worth around Rs 1,000.27 crore, excluding GST. The construction of the plant is expected to take 27 months.

The company said in a stock exchange filing “…we hereby inform that the Board of Directors of the Company at its meeting held today i.e. October 9, 2024, has accorded its approval for Placement of Purchase Order on Larsen & Toubro Ltd for setting up of 1200 MTPD (DAP basis) Complex Fertilizer plant on LSTK Basis at RCF, Thal.” 

In July of this year, Rashtriya Chemicals and Fertilizers revealed that its board of directors had sanctioned an agreement with Topsoe to upgrade its ammonia plant at RCF Thal. The construction period for the plant is also set at 27 months.

The 36-month contract, valued at Rs 514.6 crore, was awarded to the international entity Topsoe and includes procuring a basic engineering design package (BEDP) and supplying proprietary equipment and catalysts to reduce specific energy consumption.

Presently, the government holds a 75% stake in RCF, with the remaining 25% distributed among LIC/mutual funds, UTI/financial institutions, and the public.

RCF operates fertiliser and chemicals manufacturing facilities in Trombay and Thal, Maharashtra, where it produces nitrogenous, phosphatic, and potassic fertilisers and a wide range of industrial chemicals.

At 11:13 am, Shares of Rashtriya Chemicals and Fertilisers were trading 7.03% higher at Rs 183.04 per share on the NSE.

The future of investing is here! Unicorn Signals leverages advanced AI technology to provide you with powerful market predictions and actionable stock scans. Download the app today and 10x your trading & investing journey!