Deferred Nalco, RINL issues may not happen before February

An Empowered Group of Ministers (EGoM) is likely to take a final call on the proposed disinvestment of Hindustan Copper Ltd (HCL) next week. According to the Union Government sources, the panel is to consider fixing a date for the auction or offer for sale of 9.5 per cent stake in HCL.

Road shows over

EGoM is also to determine the floor price for the one-day auction on the BSE and the NSE, sources in the merchant banking circles told Business Line. The merchant bankers have made their suggestions regarding the floor price, sources said.

A limited exercise of domestic road shows — one in Mumbai and the other in Chennai — has already taken place earlier this month.

Merchant banking sources said the current reading of the market pulse suggested that there was “no lack of receptivity.” But, some of the players understood to have expected a certain “discount” (to the current price level of HCL) in the floor price for interplay of competing bids.

Incidentally, EGoM has the option of not accepting the suggestions and withdraw the auction proposal, at least for the time being. The Government-engaged five merchant bankers are ICICI Securities, UBS Securities, Kotak Mahindra Capital, SBI Capital and Enam Securities.

Sources also said the deferred disinvestment of listed Nalco and unlisted Rashtriya Ispat Nigam Ltd may not take place before coming February.

“The Department of Disinvestment seemed to have hinted at a time frame between February and March for the both,” head of a merchant bank said. The SEBI’s approval for RINL initial public offer expires in March 2013. The Nalco sale-off (12.15 per cent stake) was to happen in November through the exchange-organised auction route.

(This article was published on November 15, 2012)
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