RCF shares touched a day high of Rs 137.16 on 8 July after a Rs 1,500 crore FPO plan, but gains faded and the stock turned negative.

Here is what triggered the initial rally. RCF’s board approved a plan to raise funds through what is called a Further Public Offering, or FPO.

In simple terms, this means the company will issue new shares to raise money, rather than borrowing it. The amount involved is up to Rs 1,500 crore. This fundraise still needs a few approvals before it can go ahead.

RCF needs the green light from its own shareholders, as well as from the Department of Fertilisers and the Department of Investment and Public Asset Management, since RCF is a government-owned company.

There was more to the board meeting than just the fundraising plan. The board also cleared changes to the company’s core business documents, opening the door for RCF to expand well beyond fertilisers.

The new areas include renewable energy, water treatment, agrochemicals, warehousing and logistics. This is a fairly big shift for a company that has traditionally focused on urea and other chemical fertilisers.

If these plans go through, RCF could end up operating in sectors like solar power generation and sewage treatment plants, alongside its usual fertiliser business.

Despite the initial excitement, the reversal today suggests some investors are taking a wait and see approach, especially given how many regulatory approvals are still needed before any of this becomes reality.

It’s trading at Rs 129.30 as of 14:56 pm, down 1.22% for the day.

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