Govt to sell 4% stake in Hindustan Copper at floor price of Rs64.75 per share tomorrow
New Delhi: The government will sell 3.70 crore equity shares in Hindustan Copper Ltd (HCL) at a floor price of Rs64.75 apiece through a two-day offer-for-sale (OFS) beginning on Wednesday, with an option to issue a similar number of shares in case of over subscription.
The sale of 4% stake or over 3.70 crore shares at Rs64.75 apiece would fetch about Rs240 crore to the exchequer. In case the government decides to issue additional up to 3.70 crore shares, the share sale can together fetch up to Rs480 crore to the exchequer. The government currently holds 82.88% stake in HCL and the stake sale with green shoe option would help the government meet the minimum public shareholding norm of market regulator Sebi.
The floor price of Rs64.75 a unit is at a 8.35% discount over Tuesday’s closing price of Rs70.65 on the BSE. The two-day OFS would open for institutional investors on Wednesday and retail investors would get to bid on 3 August. A retail investor is defined as the one who place bids for shares not more than Rs2 lakh. The government has already raised over Rs8,428 crore through disinvestment in five companies, and one share buy back. The government has budgeted to raise Rs72,500 crore through stake sale in PSUs.
This includes Rs46,500 crore from minority stake sale, Rs15,000 crore from strategic disinvestment and Rs11,000 crore from listing of insurance companies.