Govt to sell up to 10% stake in Hind Copper via OFS, may garner Rs 1,120 cr
The government will sell 5% or 48.3 million shares in the copper miner at Rs 116 apiece on Thursday and Friday.
The government would sell up to a 10% share in Hindustan Copper through an offer for sale (OFS), bringing in roughly Rs 1,120 crore in divestment proceeds for the exchequer.
The government will sell 5% of the copper miner’s shares, or 48.3 million shares, for Rs 116 each. The stock’s floor price has been established at a 7% discount on Wednesday’s closing price. A greenshoe option to sell an extra 5% stake in the public sector company is also included in the OFS (PSU).
At the stated floor price, the entire 10% sale may net the government Rs 1,122 crore, reducing the sovereign’s interest in the state-owned corporation to 62.76 percent.
On Thursday, the offer will be offered to institutional investors, with a minimum of 25% of offer shares reserved for mutual funds and insurance companies if valid bids are received at or above the Rs 116 floor price. In the event of an under subscription, the unsubscribed share will be made accessible to other non-retail bidders.