Hindustan Copper hits 10-month low ahead of disinvestment

The government propose to divest 4% stake in the company on Friday.

Hindustan Copper has tanked 7.2% to Rs 222, also its lowest level since January, in opening deals on the BSE on concerns that the government will offer shares at discount to the market price to lure investors.

The government, which currently holds 99.59% stake, propose to divest 37 million equity shares of the face value of Rs 5 each aggregating approximately 4% of the paid up equity share capital of Hindustan Copper.

“The sale shall take place on the separate window of the stock exchanges and shall commence on November 23, 2012 at 9.15 a.m. and shall close on the same day at 3.30 p.m. Indian Standard Time,” the state-owned company said in a filing.

 

The stock opened at Rs 242 and has seen a combined around 100,000 shares changing hands on the counter on both the exchanges.