The fertiliser major IIFCO on Monday emerged as a major bidder for the government stake in Madras Fertiliser Limited, with some major players choosing to stay away.

The fertiliser co-operative Kribhco along with Tata Chemicals and Deepak Fertilisers decided against entering the fray as initial bids closed for MFL on Monday, sources associated with the process said in New Delhi.

However, confirmation could not be obtained from the K K Birla group company, Zuari Chambal Fertilisers.

The government has decided to divest 32.7 per cent stake in MFL to a strategic partner along with the management control.

It also decided to negotiate with its joint venture partner National Iranian Oil Company to enable the latter to tag along in the process.

A consortium of ICICI Securities and Bank of America has been mandated to act as the global advisors for the deal.

The loss making PSU is also in the process of seeking a capital restructuring package aimed at improving its balance sheet and attracting prospective bidders.

The PSU with one manufacturing unit near Chennai is engaged in the manufacture of ammonia, urea and NPK.

The cabinet committee on divestment had earlier sought fresh bids for the company along with those for NFL and FACT after finalisation of fertiliser prices and changes in the fertiliser policy.