Hindustan Copper shares get lukewarm response in early trade
State-run Hindustan Copper's share sale today began with a lukewarm response as bids worth Rs 1.25 crore were received in the first one and half hours as against an overall target of up to Rs 1,376 crore.
New Delhi: State-run Hindustan Copper's share sale today began with a lukewarm response as bids worth Rs 1.25 crore were received in the first one and half hours as against an overall target of up to Rs 1,376 crore.
The offer for sale of Hindustan Copper shares, which started at 9.15 am, had received a total bids for 79,990 shares, which are worth Rs 1.25 crore at the floor price of Rs 155 per share, till 10.45 am.
Market experts said that the bidding may gain momentum later in the day. The bidding would continue till 3.30 pm today after which the final price and allocation would be determined.
A heavy discount in floor price led to a sharp fall in the share price of the company in the secondary market which was trading at Rs 228.25 apiece at around 11 am, down 14.29 percent over the previous closing.
The government, which has fixed the floor price at Rs 155 per share, plans to sell up to 9.59 percent or 8.87 crore shares of its 99.59 percent stake through the offer for sale route.
Out of this, the government is seeking to sell a minimum four percent stake and can go up 9.59 percent depending on the investors' response.
If fully subscribed, the 9.59 percent stake in HCL can fetch up to Rs 1,376 crore to cash-pressed exchequer. The HCL public offer will set the tone for the government's disinvestment programme of Rs 30,000 crore which it aims to complete in less than five months of the current financial year.
HCL has kept 25 percent of the issue reserved for mutual funds and insurance companies. Other issues expected to hit the market in the near future are NMDC and Oil India.
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