The government is set to divest 4.01 per cent stake in state-owned Hindustan Copper Ltd (HCL) on Wednesday.
The empowered group of ministers (EGoM) has cleared 4.01 per cent stake sale in HCL. The issue will hit markets tomorrow, said Ravi Mathur,secretary,department of disinvestment after the meeting of the ministerial panel. Shares of the copper miner will be offered at Rs 70 apiece,which is a 3.64 per cent discount on Tuesdays closing price of Rs 72.65 on the S&P Bombay Stock Exchange.
The floor price for the sale in terms of the OFS guidelines shall be Rs 70 per equity share of Hindustan Copper Ltd, the company informed the stock exchanges in a filing.
The stake sale that involves sale of 3.71 crore shares,which will be carried out through the offer for sale route,is expected to raise about Rs 270 crore at current market prices.
The government currently holds 94.01 per cent stake in HCL and the stake sale would make the company comply with the minimum 10 per cent public holding norm of market regulator Sebi.
The government had in November last year also 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.
HCL is the second PSU to hit the markets in the current fiscal. Earlier this month,the government had raised Rs 568 crore through divesting 9.33 per cent stake in MMTC. The government plans to raise Rs 40,000 crore through disinvestment in 2013-14.