State-run Hindustan Copper may not sell new shares in a planned follow-on public offer as soaring copper prices have left the company with strong cash reserves and no immediate need to raise funds.
Hindustan Copper shares rose more than 5% on Wednesday, a day after the state-run Indian company said it may not sell shares in a follow-on offer following a jump in cash reserves on the back of soaring copper prices.
State-run Steel Authority of India's up to USD 778 million share sale has been delayed further, with its chairman on Wednesday saying it was difficult to launch the offering in mid-June due to unfavourable market conditions.
Shakeel Ahmed, CMD of Hindustan Copper, in an interview with Latha Venkatesh and Gautam Broker, spoke about the recent happenings in his company and the road ahead.
Hindustan Copper’s follow- on public offer (FPO), which was expected to come out in FY12, may get delayed further. Speaking to CNBC-TV18's Udayan Mukherjee and Mitali Mukherjee, the company's CMD Shakeel Ahmed said, there is still no clarity on the timing for the FPO.
Hindustan Copper has reported a sales turnover of Rs 307.79 crore and a net profit of Rs 80.72 crore for the quarter ended Dec '10
Hindustan Copper’s Q3 net profit was at Rs 80.7 crore. Its net sales were at Rs 307 crore.
Hindustan Copper Q3 net profit was at Rs 80.7 crore.
The Government may be confident about achieving its divestment target of Rs 40,000 crore for this fiscal, but marketmen say unstable market conditions can be a spoilsport.
In an exclusive interview with CNBC-TV18, Shakeel Ahmed, CMD of Hindustan Copper, says that the demand and supply mismatch for 2011 is to the extent of four to five lakh tonne and it will keep the copper prices buoyant.
The follow-on public offer of Hindustan Copper is unlikely to happen this fiscal year, reports CNBC-TV18 quoting sources from the finance ministry. This information comes at a time when the Empowered Group of Ministers (EGoM) met the finance minister to discuss the issue.
Hindustan Copper touched a 52 week low of Rs 290.05. At 13:59 hrs the share was quoting at Rs 296.55, down Rs 23.60, or 7.37%. The EGoM is going to meet today on company's FPO, reports CNBC-TV18.