State-owned Hindustan Copper will launch its pre-road shows overseas this Sunday to woo global investors for the planned share sale, which is expected to raise an estimated Rs 4,000 crore.
"Hindustan Copper will begin a two-phase pre-marketing activities overseas, starting coming Sunday for its 20 per cent Follow-on Public Offer," a person in the know of the development said.
The FPO is expected to hit the market in first week of December.
The pre-marketing initiative would begin in the UK and later move on to Asian countries, including Singapore and Hong Kong. In the first phase, a team comprising officials from Hindustan Copper, Department of Disinvestment and Ministry of Mines will leave for UK, the source said.
"In the second phase the team will reach Sydney on October 18, Hong Kong on October 20 and then Singapore on October 21-22. The officials will meet global investment bankers and private equity firms among others in the two-phased pre-road shows," the source added.
The 20 per cent FPO, for which Hind Copper had recently filed a draft prospectus with market regulator Sebi, will see government divesting its ten per cent stake in the company, and the copper major issuing fresh equity in the same proportion.
The Centre at present holds 99.59 per cent stake in the company.
"The FPO is slated to hit the market in the first week of December. The main road shows for the FPO are likely to begin by the fourth week of November," the source added.
The company will seek the responses of the global and domestic investors towards its forthcoming FPO before deciding on roping in anchor investors for the issue.
Anchor investors are those that buy shares of a company before the launch of a public issue. The concept of anchor investors was approved by Sebi last year.
Anchor investors, who cannot be promoters of the issuer company, can be allocated as much as 30 per cent of the portion, reserved for qualified institutional buyers. Such investors must bid for at least Rs 10 crore worth of shares.
UBS Securities, ICICI Securities, SBI Capital, Kotak Mahindra and Enam Securities are managing the issue.
The Hindustan Copper share sale is part of the government efforts to raise Rs 40,000 crore by divesting its stakes in PSUs like Coal india, SAIL, Hindustan Copper, MOIL among others.
