Govt raises Rs400 cr from sale of 7% equity in Hindustan Copper

The government's sale of a seven-per cent stake in Hindustan Copper Limited was fully subscribed on Friday helping it to raise approximately Rs400 crore from the disinvestment.

Hindustan Copper Limited is a vertically-integrated company in the mining and metal sector, under the ministry of mines. government of India is the major stake holder in said CPSE, owning 89.95% of paid up equity.

As promoter, the government of India offered 6,47,65,260 shares (comprising 7 per cent of total paid up equity) of Rs5 face value each to the public through the OFS (offer for sale) route, at a floor price of Rs62 per share. Of the total shares on offer 20 per cent or 1,29,53,052 shares were reserved for retail category.

The government had announced that it would sell up to 6,47,65,260 equity shares of the company on 29 September (for non-retail investors) and on 30 September (for retail investors and for non-retail investors), representing 7 per cent of the total paid up equity share capital.

The offer opened on a separate window of the stock exchanges at 9:30 am on Thursday and closed at 15:30 hours on 30 September.

According to the managers to the issue, "Only retail investors shall be allowed to place their bids only on the T+1 day. Further, those non-retail investors who have placed their bids on T day and have chosen to carry forward their bids to T+1 day, shall be allowed to revise their bids on T+1 day," it said.

The trading took place on NSE as well as BSE on 29.9.2015 and 30.9.2015 for the non-retail and retail category respectively. The non retail category got oversubscribed with 1.56 times. The issue has been fully subscribed and Government will get approximately Rs400 crore from this disinvestment.