Government To Sell 7% Stake In Hindustan Copper

Thomson Reuters

28 Sep 2016, 07:52 PM IST

The government owns almost 90% of Hindustan Copper Ltd.

Mumbai: The government is selling a 7 per cent stake in state-run Hindustan Copper Ltd in stock market deals over two days to Friday, potentially raising Rs 402 crore ($60.5 million).

The government, which owns almost 90 per cent of the miner, is selling 64.7 million shares, and has set a floor price of Rs 62 apiece, according to a regulatory filing.

The sale is part of the government's asset sale plan to raise funds to help plug its deficit. For the year to March 2017, it plans to raise Rs 56,500 crore from such sales.

The government also needs to cut its stake in state-run companies to 75 per cent over a period of time as capital market rules require publicly traded companies to maintain a minimum 25 per cent float.

SBICAP Securities, ICICI Securities, Edelweiss Securities and Deutsche Equities are managing the sale.

($1 = Rs 66.4886)