New Delhi: Starting its Rs 30,000-crore disinvestment process for the current fiscal, the government Wednesday decided to offload four percent stake in Hindustan Copper (HCL) through the offer for sale route on Friday.
"The sale will take place on the separate window of the stock exchanges and shall commence on November 23 at 9.15 am and shall close on the same day at 3.30 pm," HCL said in a filing to the BSE.
The pricing of the issue would be announced following the close of the market Thursday. Shares of the company settled at Rs 239.20 apiece, down 3.86 percent over the previous closing in the BSE.
The government would further dilute 5.59 percent stake in the company in the second tranche to bring down its holding to 90 percent.
"We don't want to flood the market with extra liquidity so we are divesting stakes in two tranches," Disinvestment Secretary Halim Khan said after a meeting of a Ministerial Panel to decided on the issue.
As per the company's BSE filing, 25 percent of the 3.7 crore shares, representing four cent stake, would be reserved for allocation to mutual funds and insurance companies.
"No single bidder other than mutual funds and insurance companies shall be allocated more than 25 percent of the size of the sale," it added.
On September 14, the government had gave its nod for disinvestment of 9.59 percent equity of the company through an offer for sale of shares through stock exchanges.
Axis Capital, ICICI Securities, Kotak Securities, SBICAP Securities and UBS Securities India would act as "seller's broker" for the issue.
The government aims to garner Rs 30,000 crore by selling its shares in the central PSUs in the current fiscal.
During the current fiscal, it is aiming to sell shares in NALCO, SAIL, MMTC, NMDC, NTPC and Oil India, among others.
Asked which PSU would come in the block next, Khan said, "Hopefully, either NMDC or Oil India."
If the Cabinet Committee on Economic Affairs gives it nod for disinvestment of stake in NTPC at its scheduled meeting tomorrow, then the NTPC issue might come in January, he said.
"If CCEA decides, then yes, January is the most feasible time," Khan added.
First Published: Wednesday, November 21, 2012, 21:10