Hindustan Copper’s Rs4,000-cr FPO likely to begin from 6 Dec

Hindustan Copper’s Rs4,000-cr FPO likely to begin from 6 Dec

New Delhi: Taking forward the government’s disinvestment drive, the 4,000-crore follow-on public offer (FPO) of state-run Hindustan Copper Ltd is likely to hit the market on 6 December.

The offering will close for bidding on December 9, sources told PTI.

Hindustan Copper Ltd (HCL) filed draft prospectus with the Securities and Exchange Board of India in September for its proposed 20% share sale programme.

In the 20% share sale, the government is selling 10% of its stake, while the company would issue fresh equity in the same proportion.

HCL’s 0.41% stake is already with the public. The proposed FPO will see the government holding coming down to 81.45% from 99.59% at present.

Shares of the company were trading at 441 on the Bombay Stock Exchange, up 0.07% from the previous close.

In July, the copper producer appointed UBS Securities, ICICI Securities, SBI Capital, Kotak Mahindra and Enam Securities to manage the issue.

Mines Minister B K Handique had earlier said the share sale could generate around 4,000 crore. The Cabinet had cleared disinvestment plans of HCL in June.

The company had earlier said it would embark upon increasing its mining capacity from the present 3.2 million tonne annually to 12 million tonne in the next five-six years, at a capital investment of 4,580 crore.

The company is also eyeing copper assets in countries like Chile, Namibia and Afghanistan, besides forging an alliance with another mining PSU Nalco.

The government aims to raise 40,000 crore through divestment this fiscal. The other disinvestment candidates for FY10 include Coal India, SAIL, MMTC and MOIL.

It had raised 25,000 crore through stake sale in Oil India, NMDC, REC and NTPC last fiscal.