‘Chhatrapati Shivaji Maharaj Katha’ at Patanjali University concludes
The narration of ‘Chhatrapati Shivaji Maharaj Katha’ being organised at Patanjali University on the ocassion of Chaitra Navratri, Ram Navami,…
PRESS TRUST OF INDIA
New Delhi, 2 July
The base price for government’s 4.01 per cent stake sale in Hindustan Copper tomorrow has been fixed at Rs 70 apiece which will garner a minimum of Rs 260 crore to the exchequer.
The base price is at a discount of 3.65 per cent to the current market price of Rs 72.65 a share. HCL shares today slumped 6.62 per cent to settle at Rs 72.65 on the Bombay Stock Exchange over yesterday’s close.
“The floor price for the stake sale in terms of the offer for sale (OFS) guidelines shall be Rs 70 per share of Hindustan Copper Ltd,” the company said in a filing to the BSE. Earlier in the day, the empowered group of ministers (EGoM) on disinvestment, headed by finance minister P Chidambaram, cleared the stake sale in Hindustan Copper.
“The EGoM has cleared 4.01 per cent stake sale in HCL. The issue will hit markets tomorrow,” disinvestment secretary Ravi Mathur told reporters after the the EGoM meeting.
The government holds 94.01 per cent stake in Hindustan Copper. The stake sale would make the company compliant to the minimum 10 per cent public holding norm of market regulator the Securities and Exchange Board of India.
The sale of 4.01 per cent stake or over 3.71 crore shares through offer for sale (OFS) route at Rs 70 per share will fetch around Rs 260 crore to the exchequer.
The government had in November last year sold 5.58 per cent stake in HCL through OFS route at an average price of Rs 156.56 apiece. The stake sale fetched Rs 808 crore to the exchequer.
In September 2012, the Cabinet had approved 9.5 per cent stake sale of HCL. The government had then decided to go ahead with only one tranche of the issue.
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