The divestment will fetch the government Rs 102.67 crore (Rs 1.03 billion) for its 82.8 lakh (8.28 million) shares in GFCL.

The bid price is 59.79 per cent higher than Friday's market price of Rs 77.60 for GFCL shares on the Bombay Stock Exchange and 211.16 per cent higher than the price that was quoting on May 10, the day on which bids were invited for the disinvestment of the government's stake.

The Rs 4,500-crore (Rs 45-billion) Murugappa group has had an eye on GFCL for over three years, though the transaction process may be delayed a bit in view of a case filed by one of the disqualified bidders in the Andhra Pradesh High Court on Friday.

If the court gives a verdict favourable to the government after hearing the case on July 2, the Murugappa group-controlled Coromandel Fertilisers, which has already mopped up close to a 15 per cent stake in GFCL at an average price of about Rs 25, will soon come out with an open offer at a minimum price of Rs 124 per share to acquire at least another 20 per cent of the equity from the public as per Sebi's guidelines on substantial acquisition of shares and takeovers.

The price bids of the three qualified bidders were opened on Friday as a case was filed by the city-based Krebs Biochemicals challenging its disqualification during the technical evaluation of bids.

While Coromandel Fertlisers quoted the highest price of Rs 124 per share, the two other qualified bidders, South Africa-based Foskor Limited and Tunisia-based GCT, quoted Rs 96 and Rs 70, respectively.

Assuming the possibility of any of the parties moving court, the state public enterprises department had in advance filed caveats against all bidders.

The high court on hearing both the parties on Friday gave clearance to open the bids as scheduled. However, the court said a final decision would be taken after it on July 2.

While Krebs Biochemicals, which filed the bid as part of a consortium with the city-based SMS Pharma and Chemtech Fertilisers, found fault with the technical evaluation of its bid by the government, the state public enterprises department says the bid "was not found to be complete on several counts".

"Every bid was evaluated on the basis of 20 parameters, whether they are complete, responsive and compliant with the conditions laid down in the bid document. Krebs' bid was disqualified on issues of fact and not on issues of opinion.

"However, the final decision will be taken after hearing the court's verdict on July 2," an official of the state public enterprises department said.