India raises Rs 400 crore from Hindustan Copper share sale | business-news | Hindustan Times
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India raises Rs 400 crore from Hindustan Copper share sale

The government disinvested 6.83 per cent stake in Hindustan Copper Ltd (HCL).

business Updated: Aug 03, 2017 20:09 IST
Agencies
Workers at the Indian Copper complex in Ghatsila in Jharkhand.
Workers at the Indian Copper complex in Ghatsila in Jharkhand.(www.hindustancopper.com)

India has raised about Rs 400 crore by selling a 6.8 percent stake in state-run miner Hindustan Copper Ltd, the finance ministry said on Thursday.

The government sold the shares through an auction on the stock exchanges over two days to Thursday. After the sale, its stake in the miner will come down to 76.05 percent, the ministry said.

“The Government of India has disinvested 6.83 per cent of paid up equity in Hindustan Copper Limited through Offer for Sale (OFS). The Government is likely to get approximately Rs 400 crore from this disinvestment,” a finance ministry statement said.

The floor price for the share sale was fixed at Rs 64.75 per share and retail investors were offered discount of 5 per cent on the cut off price for the non-retail Category.

Institutional investors bid for 5.05 crore shares, which is 1.71 times the 2.96 crore shares on offer for them.

“As a result, the Government revised the total offer size to 6.83 per cent of the paid-up capital,” the statement said.

The retail portion of HCL OFS also got good response from the retail investors and the revised offer size of 1.26 crore shares also got fully subscribed.

“Overall, HCL OFS got good response from the investors,” the ministry added.

This is the 4th CPSE OFS in the current financial year, 2017-18.

Shares of HCL closed at Rs 62.45, down 4 per cent on BSE.

The government has already raised over Rs 8,428 crore through disinvestment in five companies, including selling stake in L&T through SUUTI, and one share buy back.

India aims to raise a total Rs 72,500 crore rupees through the sale of partial government stakes in state-run and private firms during the year to March 2018, which will contribute to meeting the government’s fiscal deficit target of 3.2 percent of gross domestic product.