Hindustan Copper slips over 4% as offer for sale to divest 7% stake opens

By: | Updated: September 29, 2016 4:41 PM

Hindustan Copper shares slipped as much as 4.36 per cent in the early trade on Thursday after it announced that the government will offload 7 per cent of its stake in the company

BSE Sensex, NSE NiftyHindustan Copper shares slipped as much as 4.36 per cent in the early trade on Thursday after it announced that the government will offload 7 per cent of its stake in the company (Photo: PTI)

Hindustan Copper shares slipped as much as 4.36 per cent in early trade on Thursday after it announced that the government will offload 7 per cent of its stake in the company, through which it aims to raise about Rs 400 crore. The company proposed to sell up to aggregate of 6,47,65,260 equity shares on September 29 for non-retail investors and September 30 for retail investors and for non-retail investors who choose to carry forward their bids. Government holds 89.95 per cent stake in Hindustan Copper. The sale is part of government’s disinvestment plan, wherein it aims to raise Rs 56,500 crore in the ongoing financial year ending March 2017.

At 10.32 am, shares of the company were trading 3.67 per cent down at Rs 62.95. The scrip opened the day at Rs 63.40 and has touched a high and low of Rs 63.40 and Rs 62.50, respectively, in trade so far. Later, the scrip ended 4.97 per cent down at Rs 62.10.

In a BSE filing Hindustan Copper said, “The floor price for the offer shall be Rs 62 per equity share.”

For the quarter ended June 30, 2016, the company reported a net loss of Rs 2.82 crore against net profit of Rs 20.06 crore in the same quarter a year ago. Net sales of the company slipped by 12.15 per cent year-on-year to Rs 205.99 crore for the quarter under review. It had reported a net sales of Rs 234.48 crore in the same quarter last year.

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