Government to sell 10% stake in Hindustan Copper Ltd through offer

Government will sell upto 10% stake in Hindustan Copper Ltd through offer for sale option in the stock exchange that could fetch around Rs 1121 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 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 Rs 124.5.

Hindustan Copper reported a net profit of Rs 110 crore in FT21 against a loss of Rs 598 crore in the preceding year. The central public-sector enterprises (CPSE) under the Ministry of Mines, reported a total income of Rs 1,822 crore in FY21, compared to Rs 888.81 crore in FY20.

The Centre has so far garnered Rs 8,369 crore, against the disinvestment target of Rs 1.75 trillion for FY22. It has sold its entire stake in Axis bank held through Specified Undertaking of the Unit of India (SUUTI) for Rs3,994 crore and got Rs 3,654 crore and Rs 720 crore through stake sales in NMDC Ltd and Hdco Ltd, respectively.