Apr 27, 2012, 08.08 AM | Source: CNBC-TV18
A Cabinet note has been floated on divestment in Hindustan Copper earlier this month, reports CNBC-TV18's Nayantara Rai.
Sources say the government plans to divest 9.59% in Hindustan Copper via Institutional Placement or OFS (offer for sale). The CCEA had given its nod for the FPO process earlier. Given the market situation a follow-on public offer was not given in consideration.
Sources say the Cabinet note proposes that an EGoM should decide on route of divestment. It also says that price priority auction may be chosen for the maximum realisation. It gives the example of the disinvestment carried out in Maruti via two tranches.
Sources say this will also allow the company to meet the Sebi rules for having a minimum 10% float at the moment.