Hindustan Copper's Rs 4,000-cr FPO likely to begin from Dec 6 | business | Hindustan Times
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Hindustan Copper's Rs 4,000-cr FPO likely to begin from Dec 6

business Updated: Nov 09, 2010 15:13 IST
Hindustan Copper Ltd

Taking forward the government's disinvestment drive, the Rs 4,000-crore follow-on public offer (FPO) of state-run Hindustan Copper Ltd is likely to hit the market on December 6.

The offering will close for bidding on December 9, sources said. Hindustan Copper Ltd (HCL) filed draft prospectus with the Securities and Exchange Board of India in September for its proposed 20 per cent share sale programme.

In the 20 per cent share sale, the government is selling 10 per cent of its stake, while the company would issue fresh equity in the same proportion.

HCL's 0.41 per cent stake is already with the public. The proposed FPO will see the government holding coming down to 81.45 per cent from 99.59 per cent at present.

Shares of the company were trading at Rs 441 on the Bombay Stock Exchange, up 0.07 per cent from the previous close.

In July, the copper producer appointed UBS Securities, ICICI Securities, SBI Capital, Kotak Mahindra and Enam Securities to manage the issue.

Mines Minister B K Handique had earlier said the share sale could generate around Rs 4,000 crore. The Cabinet had cleared disinvestment plans of HCL in June.

The company had earlier said it would embark upon increasing its mining capacity from the present 3.2 million tonne annually to 12 million tonne in the next five-six years, at a capital investment of Rs 4,580 crore.

The company is also eyeing copper assets in countries like Chile, Namibia and Afghanistan, besides forging an alliance with another mining PSU Nalco. The government aims to raise Rs 40,000 crore through divestment this fiscal.

The other disinvestment candidates for FY10 include Coal India, SAIL, MMTC and MOIL. It had raised Rs 25,000 crore through stake sale in Oil India, NMDC, REC and NTPC last fiscal.