Hindustan Copper has tanked 19% to Rs 217 in opening deals on NSE after the government has announced a floor price of Rs 155 a share for stake sale in the company. The base price is huge 42% discount to Thursday’s closing price of Rs 266 on the BSE.
“Government of India has informed BSE that the floor price for the offer for sale shall be Rs. 155 per equity share of Hindustan Copper," the state-run firm said in an exchange filing.
The government, which currently holds 99.59% stake, propose to divest 37 million equity shares of the face value of Rs 5 each aggregating approximately 4% of the paid up equity share capital of Hindustan Copper. The offer size can go up to 9.59 per cent if investors respond well.
The sale shall take place on the separate window of the stock exchanges and shall commence on today (November 23, 2012) at 9.15 a.m. and shall close on the same day at 3.30 p.m.
The stock opened at Rs 255 and has seen a combined 449,077 shares have changed hands on the counter in opening deals.