The government on Friday raised Rs 400 crore from stake sale in Hindustan Copper even as retail investors bid for less than a third of the shares reserved for them, while there was over-subscription by institutional investors to bridge the shortfall. A day after institutional bidders poured in Rs 500 crore to seek 1.56 times the shares reserved for them, retail investors bid for just over 38 lakh shares or 29 per cent of 1.29 crore reserved for them, according to the stock exchange data.
The government is selling 7 per cent stake or over 6.47 crore shares at a floor price of Rs 62 a share. Of these, over 5.18 crore shares were offered to institutional investors on Thursday. A 5 per cent additional discount is being offered to retail investors, classified as those bidding for shares worth up to Rs 2 lakh. The government currently holds 89.95 per cent in Hindustan Copper.
However, the company stock slipped below the floor price of Rs 62 and closed at Rs 59.75 on the BSE. On day one of the two-day share sale, institutional investors yesterday bid for 8.08 crore shares as against 5.18 crore offered to them. Most of the bids came at the floor or minimum bid price of Rs 62. At this price, subscription of over 6.47 crore shares totalled Rs 400 crore.
Hindustan Copper is the second disinvestment through OFS route by the government in the current fiscal. It is targeting Rs 56,500 crore through selling shares and privatisation of public sector undertakings (PSUs). It had last raised Rs 2,716 crore through share sale in NHPC in April.