Rashtriya Chemicals and Fertilizers Limited's board has approved a proposal to raise funds by way of a Further Public Offering (FPO) through a fresh issue of equity shares aggregating up to Rs. 1,500 Crore. The decision, taken during the board meeting on July 7, 2026, aims to bolster the company's capital base and support its strategic objectives. The fundraising initiative is subject to necessary approvals, including consent from shareholders, the Department of Fertilizers (DOF), Government of India, and the Department of Investment and Public Asset Management (DIPAM).

Alongside the fundraising approval, the board sanctioned amendments to the Main Objects Clauses and the adoption of the revised Memorandum of Association of the Company. These changes, aligned with the provisions of the Companies Act, 2013, involve renaming existing clauses, incorporating new objects related to renewable energy and waste management, and reclassifying several existing business activities. The modifications require shareholder and DOF approval.

Key Details of the Fundraising Approval

The following table summarises the key parameters of the board-approved fundraising proposal:

Amendments to Memorandum of Association

The board approved significant restructuring of the company's Memorandum of Association to expand its operational scope. New clauses include the generation of power from renewable and non-conventional sources, operation of sewage and effluent treatment plants, and manufacturing of agro-chemicals and bio-fertilizers. Existing clauses related to explosives, agency trading, and investment in subsidiaries were modified and renumbered under Clause III(A). Additionally, new clauses were inserted to authorize the establishment of warehouses, lending to subsidiaries, and opening banking accounts.

Rashtriya Chemicals & Fertilizers has proposed amendments to its internal rules pertaining to the monetisation of assets through established investment structures, as well as the deployment of surplus funds into a broader set of securities and assets.

Proposed Rule Changes

The company has put forward revisions to its regulations governing the sale and transfer of assets through structures such as Real Estate Investment Trusts (REITs), Infrastructure Investment Trusts (InvITs), and other similar frameworks. These proposed changes are aimed at streamlining the process through which the company may monetise its asset base using these investment vehicles.

In addition to the asset monetisation amendments, Rashtriya Chemicals & Fertilizers is also seeking expanded authority to invest surplus funds across a wider range of securities and asset classes. The objective of this proposal is to enable the company to pursue better returns on its excess capital by broadening the permissible investment avenues available to it.

Key Highlights of the Proposals

The following table summarises the key aspects of the proposed amendments:

These proposals reflect the company's intent to modernise its operational and financial frameworks in line with evolving market structures and investment practices.