The government will sell 3.70 crore equity shares in Hindustan Copper at a floor price of Rs 64.75 apiece through a two-day offer-for-sale (OFS) beginning tomorrow, with an option to issue a similar number of shares in case of over subscription.
The sale of 4 per cent stake or over 3.70 crore shares at Rs 64.75 apiece would fetch about Rs 240 crore to the exchequer.
In case, the government decides to issue additional up to 3.70 crore shares, the share sale can together fetch up to Rs 480 crore to the exchequer.
The government currently holds 82.88 per cent stake in Hindustan Copper Ltd (HCL) and the stake sale with green shoe option would help the government meet the minimum public shareholding norm of market regulator Sebi.
The floor price of Rs 64.75 a unit is at a 8.35 per cent discount over today's closing price of Rs 70.65 on the BSE.
The two-day OFS would open for institutional investors tomorrow and retail investors would get to bid on August 3. Retail investor is defined as the one who place bids for shares not more than Rs 2 lakh.
The government has already raised over Rs 8,428 crore through disinvestment in five companies, and one share buy back.
The government has budgeted to raise Rs 72,500 crore through stake sale in PSUs. 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.