State-run Hindustan Copper will consider raising funds through a qualified institutional placement (QIP), along with raising up to Rs 500 crore through non-convertible debentures (NCDs) and other debt instruments.
According to an exchange filing, the company's board will meet on Sept. 23 to consider the proposed fund-raising plans.
The company will consider raising capital through a QIP or other permitted methods, involving up to 9.7 crore equity shares or securities convertible into equity shares. The board will also consider raising up to Rs 500 crore through NCDs and other securities, subject to necessary approvals.
The proposed fund raising comes shortly after the government completed an offer for sale (OFS) in Hindustan Copper.
Government Raises Nearly Rs 3,000 Crore Through OFS
The government closed the Hindustan Copper OFS on August 26 after receiving strong demand, particularly from retail investors. The Centre proposed to sell more than 5.8 crore shares, representing up to 6% stake in the company, including the 3% greenshoe option.
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The OFS had a base offer of around 2.9 crore shares and an additional 2.9 crore shares under the oversubscription or greenshoe option. The floor price was set at Rs 514 per share, representing a 10.38% discount to Hindustan Copper's closing price on the preceding Monday.
Exchange data showed that the OFS received provisional bids for 4.16 crore shares against the 5.8 crore shares offered, with the government deciding to exercise the entire greenshoe option. The share sale helped the government realise nearly Rs 3,000 crore.
Hindustan Copper Share Price Today
Hindustan Copper shares closed 3.55% lower at Rs 536.30 apiece on Thursday. The stock has declined 3.86% over the past week but has gained 11.63% in the last month. On a year-to-date basis, the shares are up 3.03%. Over the past year, Hindustan Copper has delivered a sharp 132.93% return, reflecting the strong rally in the copper-related stock.
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