New Delhi: The Cabinet on Wednesday approved a fresh equity issue of 15% by Hindustan Copper which will help the state-run company raise Rs900.6 crore.
Hindustan Copper (HCL) will issue 13.87 crore fresh equity shares, to the extent of 15%, which will bring down government stake in the PSU to 66.13%, an official statement said. The government holds 76.05% stake in the PSU, at present.
At the current market price, issuance of 15% fresh equity would garner Rs900.6 crore to the company.
“HCL will use the proceeds of Qualified Institutional Placement (QIP) to meet its expansion/capex plan which would create employment opportunities for 9,300 persons approximately," the statement said.
Expansion projects of HCL are located in the states of Madhya Pradesh, Rajasthan and Jharkhand.
The Cabinet Committee on Economic Affairs (CCEA) today approved the proposal of HCL to issue fresh equity of 15%. The paid-up share capital of HCL will increase to Rs532 crore, from the present Rs462.61 crore.
“The raising of the fund is essential for HCL’s expansion plans to achieve production level of around 1.90 lakh tonnes of metal in copper concentrate and thus meet around 30% of the refined copper demand of the country," the statement added.
Hindustan Copper, a vertically integrated copper producer, is primarily engaged in business of mining and processing of copper ore to produce refined copper metal.
Shares of HCL closed at Rs64.90, up 7.99 per cent from the previous close on the BSE.