Mines Ministry to take up Hind Copper disinvestment
Press Trust of India / New Delhi Jan 22, 2010, 17:06 IST
The Mines Ministry is expected to send the 20-per cent share sale proposal of state-run Hindustan Copper to Disinvestment Department next week, a move that may help realise an estimated Rs 11,000 crore.
"Mines Minister B K Handique has signed the proposal. Now, it will be sent to the Department of Disinvestment next week," a senior government official told PTI.
The 20-per cent Follow-on Public Offer (FPO) will see the government divesting 10 per cent of its stake in the firm, and the company issuing additional equity in the same proportion.
The money raised will be used to part finance the firm's Rs 3,500-crore expansion plans over the next five years.
Hindustan Copper's board had last month approved the share sale plan and submitted it to the Mines Ministry.
Shares of the company were trading at Rs 592.80, up 7.43 per cent per cent on the Bombay Stock Exchange in the early afternoon session. Based on the current share price, the miner and the Centre could earn nearly Rs 5,500 crore each.
The Centre holds 99.59 per cent stake in the firm.
The metal firm could raise additional equity in two phases even though the Centre will sell its 10 per cent stake at one go.
The Department of Disinvestment is expected to examine the proposal and then in consultation with the Mines Ministry prepare a draft which will be placed before the Union Cabinet for final decision. The FPO of the company is expected to start only in the next financial year.
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