Hind Copper selloff nets Rs 808 cr, thanks to LIC
The government on Friday mopped up approximately Rs 808.03 crore by diluting 5.58% of its stake in Hindustan Copper, marking the start of its divestment programme for 2012-13. The government plans to collect Rs 30,000 crore through disinvestments this year.
The stake sale, merchant bankers said, was completed successfully due to large bids placed by Life Insurance Corporation (LIC) worth around Rs 350 crore — which is understood to have placed bids through 10 brokers — as also public sector banks. According to investment banking sources, public sector banks including Punjab National Bank and State Bank of India are believed to have bought into about 15% of the issue. Foreign institutional investors, by and large, stayed away, merchant bankers said, though mutual funds were subscribers to the tune of R100 crore. Brokers and bankers said there was a fair amount of interest from retail investors and high net worth individuals.
Data with the stock exchanges showed the offer for sale attracted bids for 5.16 crore shares or 58% of the issue size at an average indicative price of R156.56 per share. The floor price was R155 per share and the minimum number of shares on offer was 3.7 crore shares. The maximum shares on offer was 8.87 crore shares or 9.59% of the total company’s paid-up equity. The Hindustan Copper stock closed at R213 on Friday.
“Due to the significant discount retail investors enquired about the sale even as we shared our negative view on the stock,” said a dealer of a domestic
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