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BW Businessworld

Hindustan Copper Share Sale Fully Subscribed, Govt Gets Rs 260 Cr

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The government garnered Rs 260 crore from stake sales of Hindustan Copper which got over- subscribed by 1.14 times of the shares on offer on 3 July' 2013.
The issue attracted bids for over 4.23 crore shares, or 1.08 times, against 3.71 crore shares on offer much before the close of market hours, according to data from stock exchanges.
The indicative price was at Rs 70 apiece, which was also the base price for the share sale.
At this price, the stake sale will fetch the exchequer Rs 260 crore.
Soon after the stake sale commenced on the bourses, Hindustan Copper scrip touched a low of Rs 70.55, 2.89 per cent lower than previous close on the BSE.
After the close of market hours yesterday, a government panel had cleared the 4.01 per cent stake sale in Hindustan Copper Ltd (HCL) at a base price of Rs 70 a share.
The base price was at a discount of 3.65 per cent over the closing price of Rs 72.65 apiece.
On the National Stock Exchange, HCL scrip hit a low of Rs 70.50, down 2.56 per cent over previous close.
Nearly nine lakh shares of HCL changed hands on both BSE and NSE in trade today.
The government holds 94.01 per cent stake in HCL. The stake sale would make the company compliant with 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 share, is being undertaken through offer for sale (OFS) route.
Axis Capital, ICICI Securities, Kotak Securities, SBICAP Securities and UBS Securities India are acting as brokers for the share sale.
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.