Deepak Fertiliser and Chemicals Ltd is understood to have submitted initial bid for acquiring the government's 32.6 per cent stake in Hindustan Organic Chemicals Ltd.

According to sources, Deepak Fertilisers has put in an expression of interest for HOCL, where the government has decided to offload 32.61 per cent stake to a strategic partner.

Last month, the government re-invited EoIs for divestment of HOCL and the last date for submission of the initial bids was Monday.

Another company, Chambal Fertilisers, which had initially shown interest in bidding for HOCL is believed to have opted out.

The government had called for initial bids in early 2001 and decided to go in for a short re-bidding process last month to enable other interested parties to take advantage of the financial restructuring programme approved by the Cabinet.

The 'in principle approval' for the turnaround package is conditional upon finalisation of the divestment of government equity.

Under the package, HOCL is to be given cash support to tune of Rs 200 crore (Rs 2 billion) and non-cash support of Rs 100 crore (Rs 1 billion) towards improving the financial position of the company.

A F Ferguson have been appointed as global advisors for the sale.