Shares of state-run Hindustan Copper nosedived by over 18% in early trade on the BSE today amid reports that the company's follow-on public offer may be priced at a discount of nearly 72 % vis-a-vis the closing price of the scrip on Thursday.
According to media buzz, Hindustan Copper FPO may be priced at around Rs. 100 per share -- 71.83 % lower, or less than a third of the closing price of Rs. 355 apiece on Thursday.
Reacting sharply to the speculation, the scrip tumbled by 18.3 % to an early low of Rs. 290 on the Bombay Stock Exchange.
Hindustan Copper shares saw a similar downside on the National Stock Exchange and plunged by 19.94 % to Rs. 285 in the morning trade.
The company's FPO, which is expected to raise Rs. 4,000 crore, is likely to be launched either in February, 2011, or after the Budget session.
Meanwhile, the BSE benchmark Sensex was up 106.75 points at 20,495.82 at 1044 hours on Friday.