Govt sells 6.83% stake in Hindustan Copper, garners Rs400 crore
New Delhi: The government has disinvested 6.83% stake in Hindustan Copper Ltd (HCL), which would fetch around Rs400 crore to the exchequer.
Through the two-day Offer for Sale (OFS) which ended on Thursday, it had planned to sell 4% in HCL, with an option to retain an over subscription of up to 4%. “The Government of India has disinvested 6.83% of paid up equity in Hindustan Copper Limited through Offer for Sale (OFS). The government is likely to get approximately Rs400 crore from this disinvestment,” a finance ministry statement said.
The floor price for the share sale was fixed at Rs64.75 per share and retail investors were offered discount of 5% on the cut off price for the non-retail category. Institutional investors bid for 5.05 crore shares, which is 1.71 times the 2.96 crore shares on offer for them. “As a result, the government revised the total offer size to 6.83% of the paid-up capital,” the statement said.
The retail portion of HCL OFS also got good response from the retail investors and the revised offer size of 1.26 crore shares also got fully subscribed. “Overall, HCL OFS got good response from the investors,” the ministry added. The government’s stake in HCL after this OFS will come down to 76.05%. This is the fourth CPSE OFS in the current financial year, 2017-18.
Shares of HCL closed at Rs 62.45, down 4% on BSE. The government has already raised over Rs8,428 crore through disinvestment in five companies, including selling stake in L&T through SUUTI, 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.