New Delhi: The base price for government's 4.01 percent stake sale in Hindustan Copper Wednesday has been fixed at Rs 70 apiece which will garner a minimum of Rs 260 crore to the exchequer.
The base price is at a discount of 3.65 percent to the current market price of Rs 72.65 a share. HCL shares Tuesday slumped 6.62 percent to settle at Rs 72.65 on BSE over yesterday's close.
"The floor price for the stake sale in terms of the Offer For Sale (OFS) guidelines shall be Rs 70 per share of Hindustan Copper Ltd," the company said in a filing to BSE.
Earlier in the day, the Empowered Group of Ministers (EGoM) on disinvestment, headed by Finance Minister P Chidambaram, cleared the stake sale in Hindustan Copper.
"The EGoM has cleared 4.01 percent stake sale in HCL. The issue will hit markets tomorrow," Disinvestment Secretary Ravi Mathur told reporters after the the EGoM meeting.
The government holds 94.01 percent stake in Hindustan Copper Ltd (HCL). The stale sale would make the company compliant to the minimum 10 percent public holding norm of market regulator Sebi.
The sale of 4.01 percent stake or over 3.71 crore shares through offer for sale (OFS) route at Rs 70 per share will fetch around Rs 260 crore to the exchequer.
The government had in November last year sold 5.58 percent stake in HCL through OFS route at an average price of Rs 156.56 apiece. The stake sale fetched Rs 808 crore to the exchequer.
In September 2012, the Cabinet had approved 9.5 percent stake sale of HCL. The government had then decided to go ahead with only one tranche of the issue and get a good price from the auction.
HCL is the second PSU to hit the markets in the current fiscal. Earlier this month, the government had raised Rs 568 crore through divesting 9.33 percent stake in MMTC.
The government plans to raise Rs 40,000 crore through disinvestment in 2013-14.