New Delhi: The base price for government's 4.01 per cent stake sale in Hindustan Copper on Wednesday 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 on Tuesday slumped 6.62 per cent to settle at Rs 72.65 on BSE over Monday'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 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 on Wednesday," Disinvestment Secretary Ravi Mathur told reporters after the the EGoM meeting. The government holds 94.01 per cent stake in Hindustan Copper Ltd (HCL). The stale sale would make the company compliant to the minimum 10 per cent public holding norm of market regulator Sebi.
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 and get a good price from the auction.
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.