Comments
One can bid for a stake in Hindustan Copper at Rs 155 a share in the auction that will happen on Friday on the BSE and NSE.
This will be the Government’s first disinvestment in this fiscal.
The Government will offer 3.7 crore shares, or 4 per cent of the company’s total paid-up capital.
The greenshoe option of 5.17 crore shares totals 5.59 per cent of the paid-up capital.
The Government holds 99.59 per cent in the company. The current floor price is at 42 per cent discount to Thursday’s closing price of Rs 266.30. The Government expects to garner Rs 573.63 crore, while the greenshoe option is expected to net Rs 801.57 crore.
In a communication to BSE/NSE, the Mines Ministry said on Thursday that “The sale is personal to each prospective purchaser (including individuals, funds or otherwise) registered with the brokers of the stock exchanges who makes a bid (each a ‘bidder’).”
One person can bid a minimum of one share. The sale will start tomorrow at 9-15 a.m. and close on the same day at 3-30 p.m.
Hindustan Copper will be the second Government-owned company where the auction method or ‘Offer for Sale of Shares through Stock Exchanges’ is being undertaken. The first case (ONGC, on March 2) proved a damp squib until Life Insurance Corporation bailed out the Government by pumping in over Rs 11,000 crore.
Offloading of 9.59 per cent shares in Hindustan Copper will serve two purposes. One, the Government will get money and, two, the company will be able to fulfil SEBI’s norms on public shareholding at a minimum of 10 per cent by August 2013.
NTPC Disinvestment
The CCEA approved disinvestment of 9.5 per cent Government equity in power producer NTPC. At present, the Government owns 84.5 per cent in this ‘Maharatna’ PSU.
Power Secretary P. Umashankar said, “We are looking to sell around 78 crore shares to get Rs 13,000 crore.
The date of issue will be decided in consultation with the Ministry of Finance and other stakeholders.”
Asked if the issue would hit the market this fiscal, he said, “I am sure, definitely this fiscal.”
> Shishir.Sinha@thehindu.co.in
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.