Institutional investors on Wednesday put in bids worth Rs 327 crore for the government stake in Hindustan Copper Ltd.
The government is selling 3.70 crore equity shares, or 4 percent stake, in Hindustan Copper at a floor price of Rs 64.75 a piece through a two-day offer for sale (OFS), with an option to issue a similar number of shares in case of over subscription.
Of the 2.96 crore shares offered to institutional investors today, bids for over 5.05 crore shares have come in. The government exercised the green shoe option to retain excess subscription. At the floor price of Rs 64.75 a share, subscription of 5.05 crore has generated investor demand worth Rs 327 crore.
The share sale will open for retail investors on Thursday. The government currently holds 82.88 percent stake in Hindustan Copper and the stake sale with a green shoe option would help the government meet the minimum public shareholding norm of market regulator SEBI.
The government has already raised over Rs 8,428 crore through disinvestment in five companies and one share buyback. It has budgeted to raise Rs 72,500 crore through stake sale in PSUs this fiscal. This includes Rs 46,500 crore from minority stake sale, Rs 15,000 crore from strategic disinvestment and Rs 11,000 crore from listing of insurance companies.
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