Hindustan Copper sale bags Rs 808 cr
Following the slump in the share price, market capitalisation of the company shrunk by a whopping Rs 4,925 crore to Rs 19,711 crore.
Disinvestment Secretary Haleem Khan said institutional investors participated in the issue, but the details would be known only on Monday.
"We went to the market with 4 per cent and got bid for 5.58 per cent. I don't think it can be considered as failure.
I think I should be considered as good success keeping in view the market conditions...(and) shares are illiquid," Khan told reporters.
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"A total bid for 5,16,11,858 shares were received. It has been decided to accept the entire number of shares bid for at or above the floor price. Thus, approximately 5.58 per cent of the total paid up share capital of HCL stands divested through this issue," the official statement said.
The Hindustan Copper issue is crucial for government as it sets the tone for the government's disinvestment programme of Rs 30,000 crore which it aims to complete in less than five months of the current financial year.
The disinvestment process is important for the government to meet its 5.3 per cent fiscal deficit target, particularly in the face of growing trade deficits.
Chidambaram said, "We will go forward with the disinvestment processes as approved by the CCEA between now and March...I hope that we can collect the targeted Rs 30,000 crore."
Khan said disinvestment of 10 per cent
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