Hind Copper disinvestment: Government sells 6.83%, raises Rs 400 crore

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Mumbai | Published: August 4, 2017 5:00:36 AM

The government has disinvested 6.83% stake in Hindustan Copper, which would fetch around Rs 400 crore to the exchequer.

After the sale, the government’s stake in the miner will come down to 76.05%. (Image: Reuters)

The government has disinvested 6.83% stake in Hindustan Copper, which would fetch around Rs 400 crore to the exchequer. “The government has disinvested 6.83% of paid-up equity in Hindustan Copper Limited through offer for sale. The government is likely to get approximately Rs 400 crore from this disinvestment,” a finance ministry statement said. After the sale, the government’s stake in the miner will come down to 76.05%. The offer for sale (OFS) of Hindustan Copper’s shares was subscribed 1.02 times by investors on Thursday, the concluding day of the offer. Investors bid for 6.45 crore shares against 6.31 crore shares on offer. Retail investors on Thursday bid for 1.40 crore shares against 1.26 crore shares reserved for them. On Wednesday, non-retail investors had bid for 5.05 crore shares.

The floor price for the shares was fixed at Rs 64.75. The stock ended Thursday’s session at Rs 62.45 on BSE, falling 4%. The stock fell by 11.60 % in the past two sessions. The benchmark Sensex fell by 0.74% on Thursday and ended the session at 32,237.88. Initially Hindustan Copper had proposed to sell up to 3.7 crore shares with an additional option to sell another 3.70 crore shares.

On Wednesday, the ministry of mines informed the exchanges that they will sell an additional 2.61 crore shares. sA total of 69.84 lakh shares was traded on the two main exchanges — BSE and National Stock Exchange — and the volume was 6.68 times higher than average daily volume in six months. Hindustan Copper posted a net profit of Rs 61.94 crore for the year ended March 2017, against a net profit of Rs 37.74 crore in the previous financial year.

The company is engaged in a range of activities encompassing mining, refining and casting of refined copper metal. Last week the government raised Rs 530 crore through stake sale in National Fertilizers. The government hopes to raise Rs 72,500 crore in FY18 through a combination of minority stake sales, strategic disinvestments and through the listing of state-owned insurance companies. So far the government has raised Rs 8427.59 crore through stake sales, buyback, and through divestment of strategic holdings in Specified Undertaking of Unit Trust of India.

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