The government is likely to consider tomorrow the proposed nearly 20 per cent stake sale in Hindustan Copper (HCL) to raise as much as Rs 4,000 crore, company's CMD Shakeel Ahmed said today.
"The stake sale approval will come before the Cabinet tomorrow and we expect to file DRHP (Draft Red Herring Prospectus with the Sebi) by late July," Ahmed told reporters on the sidelines of a CII event here.
He further said that HCL would be divesting around 20 per cent of the paid up capital of the company and the follow-on-public offer is likely to hit the market by September.
"The government plans to raise Rs 2,000 crore from equity sale and another Rs 2,000 crore will come by way of equity infusion. Overall we look at raising about Rs 4,000 crore," Ahmed added.
The government currently holds 99.59 per cent stake in HCL and its holding would get diluted by 18.44 per cent. HCL is one the major copper producers and copper ores miners in the country.
"HCL equity will get enhanced by 10 per cent post issue. the government holding will come down to 81.56 per cent," Ahmed said.
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The company is in the process of finalising the merchant bankers, which Ahmed said, would be done by June 21.
The first stake sale this fiscal, Satluj Jal Vidyut Nigam (SJVNL), got a good response from investors -- raising over Rs 1,000 crore.
Following this, Disinvestment Secretary Sumit Bose had said that Engineer India's (EIL) disinvestment was likely to happen in the second half of July. EIL provides engineering and related technical services for petroleum refineries and other industrial projects.
Disinvestment Joint Secretary Sidhartha Pradhan had recently said that the government is likely to sell its stake in 10 PSUs, including MMTC, Coal India, SAIL, RINL and Shipping Corporation, in the current financial year.
Last fiscal, the government had raised Rs 25,000 crore through stake sale in PSUs like Oil India, NMDC, REC and NTPC.
The Budget upped the revenue target from the sale of government equity in CPSUs to Rs 40,000 crore in 2010-11.
"The Rs 40,000-crore disinvestment target for the current fiscal is on track," Bose had said.