Centre to sell 10% stake in Hindustan Copper for ₹1,100 crore
Government will sell upto 10% stake in Hindustan Copper Ltd through offer for sale option in the stock exchanges, that could fetch around Rs1121 crore to the exchequer.
“Government brings out “Offer for Sale" for 10% Equity stake sale in Hindustan Copper Ltd., including 5% Green-shoe option. The offer opens tomorrow (Thursday) for Non-Retail investors at a floor price of Rs.116 per share. Retail investors can bid on Friday," Department of Investment and Public Asset Management secretary Tuhin Kanta Pandey tweeted on Wednesday.
The floor price for the OFS has been pegged at Rs. 116 per share. On Wednesday, share price of Hindustan Copper closed 1.27% down at ₹124.5.
Hindustan Copper reported a net profit of ₹110 crore in FY21 against a loss of ₹598 crore in the preceding year. The central public-sector enterprises (CPSE) under the Ministry of Mines, reported a total income of ₹1,822 crore in FY21, compared to ₹888.81 crore in FY20.
The Centre has so far garnered ₹8,369 crore, against the disinvest-ment target of ₹1.75 trillion for FY22. It has sold its entire stake in Axis Bank held through Specified Undertaking of the Unit Trust of India (SUUTI) for ₹3,994 crore and got ₹3,654 crore and ₹720 crore through stake sales in NMDC Ltd and Hudco Ltd, respectively. But with big ticket disinvestments such as the privatization of Bharat Petroleum Corp. Ltd and the mega share sale of LIC lined up, the government is hopeful of meeting its target by 31 March 2022.