Rashtriya Chemicals and Fertilizers Ltd (RCF) has approved a ₹797 crore purchase order, plus applicable taxes, to Larsen & Toubro Ltd (L&T) for the RCF ammonia plant revamp project. The order was approved on September 25 and was awarded through the lowest tender basis.
The contract has a tenure of 36 months and aims to improve the efficiency of RCF’s ammonia plant by reducing its specific energy consumption.
RCF Ammonia Plant Revamp to Cover Engineering and Commissioning
The scope of the RCF ammonia plant revamp includes detailed engineering, manufacturing, supply, construction, erection and commissioning activities.
The contract also includes a guarantee run for the revamped ammonia plant. The project is expected to help RCF improve the plant’s energy efficiency and operational performance.
The order was awarded to L&T after the company emerged as the lowest bidder in the tender process.
No Related-Party Transaction Involved
RCF said the order does not involve any interest of its promoter, promoter group or group companies in L&T.
The company also clarified that the contract does not fall under related-party transactions.
RCF Plans ₹1,500 Crore FPO
The ammonia plant revamp order comes as RCF is also preparing for a potential capital-raising exercise.
In July 2026, the RCF board approved a proposal to raise up to ₹1,500 crore through a Further Public Offering (FPO). The proposed fundraise is subject to approvals from shareholders, the Department of Fertilizers and the Department of Investment and Public Asset Management (DIPAM).
The proposed FPO will involve a fresh issue of equity shares, with the proceeds intended to strengthen the company’s capital base.
What Is an FPO?
A Further Public Offering (FPO) is a share issue by a company that is already listed on a stock exchange.
Unlike an Initial Public Offering (IPO), which allows a company to list its shares publicly for the first time, an FPO enables an existing listed company to raise additional capital by issuing new shares to investors.
RCF Proposes Expansion Into New Businesses
Alongside the FPO proposal, the RCF board approved amendments to the company’s Memorandum of Association (MoA), subject to shareholder approval and clearance from the Department of Fertilizers.
The proposed amendments would allow RCF to expand into several additional business areas.
These include:
- Sewage and effluent treatment plants
- Water purification and recycling systems
- Renewable power generation
- Conventional power generation
- Industrial explosives
- Agrochemicals
- Bio-fertilisers
The proposed changes could broaden RCF’s business activities beyond its traditional fertiliser operations.
RCF Share Price
Shares of Rashtriya Chemicals and Fertilizers Ltd closed at ₹109.00 on the BSE, gaining ₹0.60, or 0.55%, on September 25.
The company’s ammonia plant revamp project, proposed FPO and planned expansion into additional business segments remain key developments for RCF.
