State-owned Hindustan Copper (HCL) today said it has filed draft prospectus with Sebi for its proposed 20 per cent share sale programme which is expected to raise as much as Rs 4,000 crore.
"HCL today filed the Draft Red Herring Prospectus (DRHP) for its follow-on public offer slated for November-December this year," a person in the know of the development told PTI.
In the 20 per cent share sale, the government is selling 10 per cent of its stake, while the company would issue fresh equity in the same proportion.
The company could not be contacted for comments.
Already, 0.41 per cent HCL stake with the public. The proposed FPO will see the government holding coming down to 81.45 per cent from 99.59 per cent at present.
In July, the copper producer appointed UBS Securities, ICICI Securities, SBI Capital, Kotak Mahindra and Enam Securities to manage the issue.
HCL share sale was postponed to the end of this year from the earlier planned September as the government wanted to ensure that mega stake sale of Coal India next month gets the space and mindshare it deserves.
Mines Minister B K Handique had earlier said the share sale could generate around Rs 4,000 crore. The Cabinet had in June cleared disinvestment plans of both HCL.
HCL shares on Monday ended at Rs 440.80, up 0.42 per cent on the Bombay Stock Exchange.
The company had earlier said it would embark on increasing its mining capacity from the present 3.2 million tonne annually to 12 million tonne in the next five-six years, at a capital investment of Rs 4,580 crore.
The company is also eyeing copper assets in countries like Chile and Namibia, Afghanistan besides forging alliance with another mining PSU Nalco.
The government aims to raise Rs 40,000 crore through divestment this fiscal. The other disinvestment candidates for FY10 include Coal India, SAIL, MMTC, and MOIL, this fiscal.
Last fiscal it had raised Rs 25,000 crore through stake sale in Oil India, NMDC, REC and NTPC.
