Hind Copper share sale oversubscribed; to fetch govt Rs260 crore

The government has successfully completed the offer for sale (OFS) of 4.01 per cent stake (or 37,119,152 equity shares of face value Rs5 each) of Hindustan Copper Ltd.

The issue was oversubscribed 1.18 times. At the clearing price of Rs70 per share, the OFS is expected to mobilise Rs260 crore for the government.

The issue was fully subscribed much before the close of market hours, according to stock exchange data.

Soon after the stake sale commenced on the bourses, the Hindustan Copper scrip touched a low of Rs70.55, down 2.89 per cent from its previous close, on the BSE.

The base price is at a discount of 3.65 per cent over the HCL scrip's closing price of Rs72.65 on the BSE.

On the National Stock Exchange, the HCL scrip hit a low of Rs70.50, down 2.56 per cent from previous close.

Nearly nine lakh shares of HCL changed hands on both BSE and NSE today.

The cabinet committee on economic affairs (CCEA), at its meeting held on 14 November 2012, had approved divestment of 9.59 per cent paid-up equity capital of Hindustan Copper Limited through offer for sale through the stock exchange mechanism.

The OFS held today is the second tranche for sale of 4.01 per cent of the shares.

As against a total number of 3,71,19,152 shares on offer the OFS received a total bids for 4,38,09,524 shares (BSE+NSE) above the floor price of Rs70.

HCL would now have a non-promoter shareholding of 10 per cent thereby making it compliant with the SEBI listing requirements.