EGoM will fix Hind Copper’s stake throw-away base price tomorrow
1 July 2013 10:41 PM GMT
The panel of ministers on disinvestment will meet on Tuesday to decide on the base price for 4.01 per cent stake sale of Hindustan Copper (HCL) and the issue is likely to hit the markets on 3 July.
'The meeting of the EGoM on disinvestment is scheduled to meet on 2 July,' an official said, adding that the stake sale would happen the day after.
The Empowered Group of Ministers (EGoM) on disinvestment is headed by Finance Minister P Chidambaram.
Currently, the government holds 94.01 per cent stake in HCL. The sale would make the company complaint to the minimum 10 per cent public holding norm of market regulator Sebi.
The sale of 4.01 per cent stake or over 3.48 crore shares through the Offer For Sale (OFS) route could fetch around Rs 240-250 crore to the exchequer, sources said.
The government had in November last year sold 5.58 per cent stake in HCL through an OFS 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.
If approved by the EGoM, HCL would be the second PSU to hit the markets in the current fiscal. Earlier this month, the government 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 the current fiscal.
'The meeting of the EGoM on disinvestment is scheduled to meet on 2 July,' an official said, adding that the stake sale would happen the day after.
The Empowered Group of Ministers (EGoM) on disinvestment is headed by Finance Minister P Chidambaram.
Currently, the government holds 94.01 per cent stake in HCL. The sale would make the company complaint to the minimum 10 per cent public holding norm of market regulator Sebi.
The sale of 4.01 per cent stake or over 3.48 crore shares through the Offer For Sale (OFS) route could fetch around Rs 240-250 crore to the exchequer, sources said.
The government had in November last year sold 5.58 per cent stake in HCL through an OFS 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.
If approved by the EGoM, HCL would be the second PSU to hit the markets in the current fiscal. Earlier this month, the government 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 the current fiscal.
Next Story
