Press Information Bureau

Government of India

Ministry of Finance

23-November-2012 19:35 IST

The Cabinet Committee on Economic Affairs (CCEA), in its meeting held on 14.9.2012, had approved disinvestment of 9.59% paid up equity capital of Hindustan Copper Limited (HCL) through the Offer for Sale through Stock Exchange mechanism (OFS).

The issue was held on 23.11.2012. A minimum of 4% of the paid up equity shares (3,70,08,720 shares) was offered for sale with an option to sell an additional 5.59% (ie.5,17,14,580 shares) paid up equity shares of the company. The floor price was fixed by the Empowered Group of Ministers (EGoM) at Rs.155 per share.

A total bid for 5,16,11,858 shares were received. It has been decided to accept the entire number of shares bid for at or above the floor price. Thus, approximately 5.58% of the total paid up share capital of HCL stands divested through this issue. The approximate gross receipts from the issue is Rs. 800 crores.

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DSM/RS/Ka

Disinvestment via Offer for Sale led to sale of a significant HCL stake with full bids accepted at floor price. Disinvestment of a portion of Hindustan Copper Limited's paid-up equity was effected through the Offer for Sale mechanism with a prescribed minimum offer and an option for an additional tranche. A floor price was fixed and all bids at or above the floor price were accepted, resulting in the divestment of a minority stake of the company's paid-up capital and reported gross receipts from the issue.