Govt’s 6 pc share sale in HindCopper opens for institutional bidders

The government’s two-day Offer-for-Sale for up to 6 per cent stake in Hindustan Copper began on Tuesday, targeting proceeds of around Rs 3,000 crore. Institutional bidding opened first, while retail investors can participate on Wednesday at a discounted floor price

New Delhi: The government’s Offer-for-Sale (OFS) for up to 6 per cent in Hindustan Copper at a floor price of Rs 514/ share began on bourses on Tuesday as institutional bidding got underway.

Shares of HindCopper were trading down 6.37 per cent at Rs 537 on BSE on Tuesday.

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Through the two-day OFS, the government will sell over 5.80 crore shares or 6 per cent stake (including a greenshoe option of 3 per cent) in HindCopper at a floor price of Rs 514/share.

The share sale would fetch about Rs 3,000 crore to the exchequer. Bidding will open for retail investors on Wednesday.

The floor price is at a 10.38 per cent discount over Monday’s closing share price of Rs 573.55 of Hind Copper on BSE.

The government currently has a 66.14 per cent equity holding in HindCopper.

So far in the current fiscal, the government has mopped up Rs 52,716 crore through PSU disinvestment.