6.83% equity in Hindustan Copper disinvested to raise Rs 400 cr

New Delhi, Aug 3 (IANS) The government on Thursday said it has disinvested 6.83 per cent paid-up equity in Hindustan Copper Ltd through an Offer for Sale (OFS) and is likely to raise Rs 400 crore from it.

"Overall, Hindustan Copper OFS got a good response from investors. This is the fourth central public sector enterprise OFS in the current financial year. The government's shareholding in Hindustan Copper after this OFS will come down to 76.05 per cent," the Finance Ministry said in a statement.

"The trading took place on Wednesday and Thursday. The floor price was fixed at Rs 64.75 per share (face value of Rs 5 each) and retail investors were offered a discount of 5 per cent on the cut-off price for the non-retail category," it said.

The retail portion of Hindustan Copper OFS also drew good response from retail investors and the revised offer size of 1.26 crore shares also got fully subscribed, the statement added.

The initial offer was for the disinvestment of 4 per cent paid-up capital, with an option to retain over-subscription up to 4 per cent.

The trading for non-retail portion opened on Wednesday. Against an offer size of 2.96 crore shares for the non-retail category, bids were received for 5.05 crore shares, resulting in over-subscription by 1.71 times, it said.

As a result, the government revised the total offer size to 6.83 per cent of the paid-up capital.

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