Hindustan Copper share sale: Institutions put in Rs500 crore bids on Day 11 min read . Updated: 29 Sep 2016, 10:03 PM IST
Hindustan Copper's share sale garnered 1.56 times subscription, totalling Rs500 crore, with most of the bids coming from LIC and mutual funds
New Delhi: State-owned Hindustan Copper’s share sale on Thursday garnered 1.56 times subscription, totalling Rs500 crore, with most of the bids coming from LIC and mutual funds.
The two-day share sale, wherein the government is offloading 7% of its equity, attracted bids for 8.08 crore shares as against 5.18 crore offered to institutional investors on the first day, according to the stock exchange data. Most of the bids came at the floor or minimum bid price of Rs62. At this price, subscription of over 8.08 crore shares totalled Rs500 crore.
Investment banking sources said most of the bids came from mutual funds and insurance companies, including Life Insurance Corporation (LIC). The offer for sale (OFS) will open on Friday for retail subscribers.
Shares of Hindustan Copper closed at Rs62.10, down 4.97% over previous close on the BSE.
Hindustan Copper is the second disinvestment through OFS route by the government in the current fiscal. Government is targeting Rs56,500 crore through selling shares and privatisation of public sector undertakings (PSUs). It had last raised Rs2,716 crore through share sale in NHPC in April.
The government is selling a total of 6.47 crore equity shares at a floor price of Rs62 a share. It holds 89.95% stake in Hindustan Copper. The remaining 1.29 crore shares reserved for retail investors, who would also be given a 5% discount to the share allotment price, will go up for subscription on Friday.
SBICAP Securities, ICICI Securities, Edelweiss Securities and Deutsche Equities India are acting as brokers for the sale, which is part of government’s disinvestment plan to raise Rs56,500 crore in current fiscal.