1 week ago
Institutional Investors Oversubscribe Hindustan Copper OFS Worth Rs 4,600 Crore
The government is selling some of its shares in Hindustan Copper.
Large professional investors wanted to buy many more shares than were reserved for them.
They bid for more than three times the available amount.
The bids were worth over Rs 4,600 crore at the indicative price.
The government is offering up to 6 per cent of the company.
The minimum sale price is Rs 514 per share.
Smaller investors can place bids when the sale opens on Wednesday.
The government said it would use the full extra-share option included in the sale.
Institutional investors bid for over 8.91 crore Hindustan Copper shares, against 2.61 crore shares reserved for them.
The institutional portion was oversubscribed 3.41 times, with bids valued at over Rs 4,600 crore at an indicative price of Rs 520.35 per share.
The government is selling over 5.80 crore shares, representing up to a 6 per cent stake, through a two-day Offer-for-Sale.
The OFS has a floor price of Rs 514 per share and opens to retail investors on Wednesday.
The government currently owns 66.14 per cent of Hindustan Copper and has raised Rs 52,716 crore through disinvestment this fiscal year.
- Who
- The Government of India and institutional investors are involved, with retail investors eligible to participate from Wednesday.
- What
- The government is conducting a two-day Offer-for-Sale of over 5.80 crore Hindustan Copper shares, while institutional investors have already bid for over 8.91 crore shares.
- Where
- The sale concerns Hindustan Copper shares traded on the BSE; the report is datelined New Delhi.
- When
- Institutional bidding took place on Tuesday, and the OFS opens to retail buyers on Wednesday.
- Why
- The government is selling part of its Hindustan Copper holding as part of its disinvestment and asset-monetisation programme.
Key facts
- Institutional bids
- Over 8.91 crore shares
- Institutional allocation
- 2.61 crore shares
- Oversubscription
- 3.41 times
- Indicative price
- Rs 520.35 per share
- OFS floor price
- Rs 514 per share
- Stake offered
- Up to 6 per cent, including the 3 per cent green shoe option
- Government holding
- 66.14 per cent in Hindustan Copper
- Current-fiscal disinvestment proceeds
- Rs 52,716 crore through OFS in eight PSUs and SUUTI remittances
Quotes
Arunish Chawla
Secretary of the Department of Investment and Public Asset Management
“The government has decided to exercise the entire green shoe option.”
thehansindia.com
Sources
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