Hindustan Copper spurts as board approves fund raising

Hindustan Copper surged 6.06% to Rs 35 after the company's board approved raising up to Rs 2,500 crore for all types of borrowings/ loans including bonds across various products.

The board of Hindustan Copper has recommended seeking shareholders' approval for fixing of upper limit of borrowing not exceeding Rs 2,500 crore for all types of borrowings/ loans including bonds across various products, together with interest and creation of security/charge on assets of the firm and revalidation of shareholders' approval for issuance of securities through Qualified Institutional Placement (QIP) up to 15% of existing paid up equity capital of the company.

The company's board has also intimated to the Ministry of Mines, Government of India (GoI) regarding the modification of object clause of the QIP from 'expansion/capex plan' to 'general corporate purpose including ongoing expansion/ capex plan'.

The announcement was made after market hours yesterday, 29 October 2020.

The scrip is up 91.25% from its 52-week low of Rs 18.30 hit on 25 March 2020.

Hindustan Copper is engaged in exploration, exploitation, mining of copper and copper ore, including beneficiation of minerals, smelting and refining. The firm manufactures and markets copper cathode, continuous cast copper wire rod and metal in concentrate. The company also offers copper concentrate. As of 30 September 2020, the Government of India held 76.05% stake in the copper producer.

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