The government will sell up to a 10% stake in Hindustan Copper Ltd through an offer for sale starting Thursday.
The offer is primarily for 5% and the government can retain bids for another 5% under the greenshoe option in case of oversubscription, the Department of Investment and Public Asset Management said.
The government holds 72.7% of the company.
The offer will open on Thursday for non-retail investors at a floor price of Rs 116 per share. Retail investors will be able to bid the next day.
Shares of Kolkata-based Hindustan Copper closed at Rs 124.50 on the Bombay Stock Exchange Wednesday.
The sale of the public sector unit’s shares, which comes under the Ministry of Mines, will fetch the government about Rs 1,120 crore if the full 10% equity is sold to investors.
Up to 48,351,201 shares, representing 5% of the total issued and paid-up equity share capital, will be sold through the offer-for-sale route, while the same number of additional shares can be issued under the greenshoe option, the company said in a stock exchange announcement.
The government has set a target of Rs 1.75 lakh crore from disinvestment proceeds in the ongoing fiscal 2022. Of this, the department has been able to meet Rs 8,368 crore from OFS and employee OFS route of NMDC and Hudco. Another Rs 1,633 crore has come from dividend payouts by PSUs.
It anticipates more proceeds from strategic divestment of PSUs such as Air India, BPCL, Shipping Corporation of India, BEML and Pawan Hans.
