Hindustan Copper's OFS - offer for sale garnered full subscription on Thursday, aiding the government mop up Rs.400 cr as part of 2016-17 disinvestment program. In a data provided by the BSE, it is seen that so far the 64.76-million share sale has received bids for 80 million shares. Most of the bids for the share sale were received at the base price of Rs.62 per share. Hindustan Copper share price on Thursday plunged 5 per cent to end at Rs.62.1. State-owned insurance companies and banks took part in the OFS, sources said. Close to 13 million shares meant for retail investors, those investing less than Rs.2 lac, will be auctioned today.
The Indian government is offering a 5 per cent additional discount to the retail investors buying the OFS. If the retail portion remains under subscribed, the shares shall be sold to the investors who bid in the non-retail segment, which has witnessed 1.5 times more demand than shares on offer.
In accordance to the share sale, the government's stake in the copper maker shall slump to 82.95 per cent from the current 89.95 per cent. The centre shall have to pare its holding further to atleast 75 per cent to attain the 25 per cent public float requirement.
In the first half of this financial year, the government has divested its holding in only 2 companies. In the month of April, the centre had raised Rs.2,716 cr by selling 11.3 per cent stake in NHPC Limited. The total mobilisation has reached Rs.3,117 cr and the government is staring at a sharp target in the latter half.
The 2016-17 disinvestment target has witnessed set at Rs.56,500 cr. Close to Rs.36,000 cr of this is to be raised via PSU disinvestments like Hindustan Copper and NHPC. The remaining Rs.20,500 cr is to be raised from strategic disinvestment.
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