Hindustan Copper rallied by its maximum permissible level of 20 per cent today on the Bombay Stock Exchange (BSE) as the government shortlisted bidders for its divestment. The due diligence exercise at the various units of Hindustan Copper will begin this weekend.
The scrip of this public sector metallurgy company closed at a 52-week high of Rs 61.95 on the BSE, up 16.62 over its previous close. A total of 57,600 shares changed hands on the BSE today. From Rs 37.20 on May 22, 2002, the scrip has surged 66.5 per cent to the current Rs 61.95.
Trading interest in the scrip started sometime in April this year when the government indicated its initiative to undertake divestment in Hindustan Copper. Prior to that, the scrip was very thinly traded and the last trading at the counter had taken place on 11 June 2001.
According to reports, the Centre has shortlisted four bidders for its entire 98.5 per cent stake in the company. The four bidders are Sterlite Industries, Birla Copper, Finolex Cables and the multinational Metdist.
Recently, the Cabinet Committee of Economic Affairs (CCEA) approved a financial restructuring package for the ailing metallurgy firm to make it more alluring to bidders. The government has okayed a Rs 640-crore financial restructuring package for Hindustan Copper which involves conversion of loans worth Rs 440 crore into grant-in-aid and transforming outstanding-plan loans of Rs 71.50 crore into equity to improve the net worth of the metallurgy company. The Rs 440-crore loan had been given for the company's voluntary retirement scheme.
An additional Rs 130 crore will be granted to the company for closing unviable mines and separating 300 employees through a VRS in the current fiscal. In addition, interest amounting to about Rs 26 crore will be waived.
