Hind Copper sale: LIC, PSBs help govt raise R808 crore
The auction generated bids for 51.61 million shares, or 5.6 per cent of the capital, according to stock exchange data. The government had offered 37 million shares, but had the option to sell a further 51.71 million shares. The bids came at a weighted average price of Rs 156.56, slightly above the Rs 155 floor price. The government has decided to accept the entire number of shares bid at or above the floor price.
The offer for sale evoked poor response from the public in the opening session. But demand from LIC for an estimated Rs 350 crore and PSU banks including SBI which put in their bids later, bailed out the issue.
The offer price triggered a sell off in the price of the scrip in the secondary market. The shares fell 20 per cent hitting the floor of the trading band at Rs 213.05 on the Bombay Stock Exchange. The stock lost nearly Rs 4,900 crore in market cap in the process on Friday to Rs 19,711 crore. As the government owns 99.59 per cent of Hindustan Copper, the limited free float — shares available for trading in the public — had inflated the traded price of the shares.
“Although HCL is the only vertically integrated copper producer in India, the stock is currently
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