Hindustan Copper stake sale on Wednesday
The EGoM has cleared 4.01 percent stake sale in Hindustan Copper Ltd (HCL). The issue will hit the market on Wednesday. The EGoM on disinvestment is headed by finance minister P Chidambaram. The government holds 94.01 percent stake in HCL.
July 03, 2013 / 09:41 IST
The panel of ministers on disinvestment on Tuesday cleared 4.01 percent stake sale in Hindustan Copper. The issue will hit markets on Wednesday.
Also read: Don't see much downside in Hindustan Copper: Tulsian“The EGoM has cleared 4.01 percent stake sale in HCL. The issue will hit markets on Wednesday,” Department of Disinvestment secretary Ravi Mathur told reporters after the Empowered Group of Ministers (EGoM) meeting. The EGoM on disinvestment is headed by finance minister P Chidambaram. The government holds 94.01 percent stake in Hindustan Copper Ltd (HCL).The stale sale would make the company complaint to the minimum 10 percent public holding norm of market regulator Sebi. The sale of 4.01 percent stake or over 3.48 crore shares through offer for sale (OFS) route could fetch around Rs 240-250 crore to the exchequer, sources said. HCL shares on Tuesday closed at Rs 72.65 on BSE, down 6.62 percent from Monday. “The base price will be communicated to stock exchanges shortly,” Mathur said. The government had in November last year sold 5.58 percent stake in HCL through OFS route at an average price of Rs. 156.56 apiece. The stake sale fetched Rs 808 crore to the exchequer. In September 2012, the Cabinet had approved 9.5 percent stake sale of HCL. The government had then decided to go ahead with only one tranche of the issue and get a good price from the auction. HCL is the second PSU to hit the markets in the current fiscal. Earlier this month, the government had raised Rs 568 crore through divesting 9.33 percent stake in MMTC. The government plans to raise Rs 40,000 crore through disinvestment in 2013-14. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
