The government garnered Rs 260 crore from stake sale in Hindustan Copper which got subscribed 1.14 times of the shares on offer today.

The issue attracted bids for over 4.23 crore shares, or 1.08 times, against 3.71 crore shares on offer much before the close of market hours, according to data from stock exchanges.

The indicative price was at Rs 70 apiece, which was also the base price for the share sale.

At this price, the stake sale will fetch the exchequer Rs 260 crore.

Soon after the stake sale commenced on the bourses, Hindustan Copper scrip touched a low of Rs 70.55, 2.89 per cent lower than previous close on the BSE.

After the close of market hours yesterday, a Government panel had cleared the 4.01 per cent stake sale in Hindustan Copper Ltd at a base price of Rs 70 a share.

The base price was at a discount of 3.65 per cent over the closing price of Rs 72.65 apiece.

On the National Stock Exchange, the Hindustan Copper scrip hit a low of Rs 70.50, down 2.56 per cent over previous close.

Nearly nine lakh shares of HCL changed hands on both BSE and NSE in trade today.

The government holds 94.01 per cent stake in the PSU. The stake sale would make the company compliant with the minimum 10 per cent public holding norm of market regulator Sebi.

The sale of 4.01 per cent stake, or over 3.71 crore share, is being undertaken through offer for sale (OFS) route.

Axis Capital, ICICI Securities, Kotak Securities, SBICAP Securities and UBS Securities India are acting as brokers for the share sale.

The government had in November last year sold 5.58 per cent stake in Hindustan Copper 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 per cent stake sale in the company. The government had then decided to go ahead with only one tranche of the issue to get a good price from the auction.

Hindustan Copper is the second PSU to hit the market in the current fiscal. Last month, the government had raised Rs 568 crore through divesting 9.33 per cent stake in MMTC.

The government plans to raise Rs 40,000 crore through disinvestment in 2013—14.

(This article was published on July 3, 2013)
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