Hindustan Copper OFS: Institutional buyers bid for shares worth Rs327 crore
New Delhi: Institutional investors on Wednesday put in bids worth Rs327 crore for the government stake in Hindustan Copper Ltd (HCL).
The government is selling 3.70 crore equity shares, or 4% stake, in Hindustan Copper at a floor price of Rs64.75 apiece through a two-day offer-for-sale (OFS), with an option to issue a similar number of shares in case of over subscription.
Of the 2.96 crore shares offered to institutional investors on Wednesday, bids for over 5.05 crore shares have come in. The government exercised the green shoe option to retain excess subscription. At the floor price of Rs64.75 a share, subscription of 5.05 crore has generated investor demand worth Rs327 crore. The share sale would open for retail investors on Thursday.
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 Securities and Exchange Board of India (Sebi).
Shares of HCL closed at Rs65.05 on Wednesday, down 7.93% over previous close on the BSE.
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.