The Cabinet Committee on Economic Affairs today approved a fresh equity issue of 15 percent by Hindustan Copper Ltd. which will help the state-run company raise Rs 900.6 crore.
Hindustan Copper will issue 13.87 crore fresh equity shares, to the extent of 15 percent, which will bring down government stake in the PSU to 66.13 percent, an official statement said. Currently, the government holds 76.05 percent stake in the PSU
"HCL will use the proceeds of Qualified Institutional Placement to meet its expansion/capex plan which would create employment opportunities for 9,300 persons approximately," the statement said.
The paid-up share capital of HCL will increase to Rs 532 crore, from the present Rs 462.61 crore.
"The raising of the fund is essential for HCL's expansion plans to achieve production level of around 1.90 lakh tonnes of metal in copper concentrate and thus meet around 30 percent of the refined copper demand of the country," the statement added.
Hindustan Copper, a vertically integrated copper producer, is primarily engaged in business of mining and processing of copper ore to produce refined copper metal. Expansion projects of the company are located in the states of Madhya Pradesh, Rajasthan and Jharkhand.
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