The Government of India disinvested 6.83 percent of paid up equity in Hindustan Copper Limited through Offer for Sale (OFS) and is likely to get approximately Rs 400 crore from this disinvestment.
The initial offer was for disinvestment of 4 percent paid-up capital, with an option to retain over-subscription up-to 4 percent.
The trading for non-retail portion opened on August 2, 2017. Against an offer size of 2.96 crore shares for the non-retail category, bids were received for 5.05 crore shares, resulting in over subscription by 1.71 times. As a result, the government revised the total offer size to 6.83 percent of the paid-up capital.
The trading took place on August 2 and August 3, 2017. The floor price was fixed at Rs 64.75 per share and retail investors were offered discount of 5 percent on the cut off price for the non-retail category.
Overall, HCL OFS got good response from the investors. The retail portion also got good response from retail investors and the revised offer size of 1.26 crore shares got fully subscribed.
This is the fourth CPSE OFS in the current financial year 2017-18. The government's shareholding in HCL after this OFS will come down to 76.05 percent.