State-owned Hindustan Copper's CMD Shakeel Ahmed today ruled out the company selling fresh equity through the proposed follow-on public offer (FPO) to raise funds.
"HCL does not require issue of fresh equity to support expansion of mines," Ahmed said at a news conference here today.
The earlier plan was to issue 10% fresh equity and another 10% disinvestment by the government through FPO.
Ahmed said the company had already informed the Ministry of Mines and the Department of Disinvestment about the change in its stance.
"The Cabinet Committee on Economic Affairs will now take its decision on disinvestment," he said.
Ahmed said that another hindrance which is coming in the way of the FPO is filling up of posts of five independent directors.
He said that the search committee had selected the candidates and the process would be completed in two months time.
"All the formalities of the FPO are likely to be in place in two months," Ahmed said.
Regarding expansion plans, he said the production capacity would be raised from 3.4 million tonne to 12.4 million tonne, involving a capital outlay of Rs 3,400 crore spread over a period of five years.
All the mines' production capacities would be raised, he said.
The government today said it has granted Maharatna status to Bharat Heavy Electricals Ltd and Gas Authority of India Ltd.