According to a latest update the government is about to sell 7 per cent in Hindustan Copper Ltd through a two-day offer for sale (OFS) beginning Thursday, the firm announced.
The government has already established a floor price of Rs 62 apiece, a 5.12 per cent discount to Wednesday’s closing share price. The secondary market transaction, which consists of 64.76 million shares, will help the government raise Rs 401.54 crores.
Under the revised SEBI rules for OFS introduced in February 2016, institutional as well as other non-retail investors will be permitted to place bids on the day of offer (T+0). The retail investors, for whom 20 per cent of the offer is reserved, will be permitted to bid shares one day after the trade date (T+1 basis). The retail investors will be eligible for a 5 per cent discount on the cut-off price. The government’s stake will decline to 82.95 per cent following the sale. The government holds an 89.95 per cent stake in the copper producing company as on the month of June 2016, as per the stock exchange data.
Hindustan Copper is the government’s second divestment in this fiscal. So far, the government has managed to raise around Rs 2,716 crores.
The centre had sold an 11.36 per cent stake in state-owned hydro power producer NHPC Ltd as part of the Financial Year 2017 disinvestment plan. The government’s holding fell to somewhere around 74.6 per cent, making it compliant with the Sebi’s 25 per cent minimum public shareholding norm for public sector units (PSUs), excluding all the state-owned banks.
In addition to the stake sale in PSUs, the government has also approved a share buyback plan by cash-rich PSUs.
The government preset a disinvestment target of Rs 56,500 crores in state-owned enterprises in the year 2016-17. Of this, Rs 36,000 crores will come from minority stake sales and Rs 20,500 crores has been targeted from strategic stake sales.
Earlier in the fiscal 2015-16, the government had set a record target of raising Rs 69,500 crores through disinvestment, comprising Rs 41,000 crores by way of a minority stake sale and an additional Rs2 8,500 crores from strategic sales. However, the government only managed to raise Rs 32,148 crores in divestment receipts in the entire fiscal.
On 29th September, Wednesday, Hindustan Copper share price closed at Rs 65.55 per share on NSE, and opened at Rs 62.65 apiece this morning. The share price is currently trading at Rs 62.70, up by 4.35 per cent. A total of 6,45,707 shares of the Company have exchanged hands on the counter of NSE against the 20 days average daily volume of 4,23,533 shares. The total traded amount traded so far is Rs 406.28 lacs.
Hindustan Copper share price has made a 52 week high of Rs 73.80 made on 22nd August 2016 and a 52 week low of Rs 42.00 made on 24th May 2016. The Upper Price Band is 78.65 and the Lower Price Band is 52.45.
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