State-owned Hindustan Copper today said it has finalised five bankers to manage its estimated Rs 4,000 crore follow-on public offer (FPO).
ICICI Securities will be the main banker for the issue, while SBI Capital, UBS Securities India in consortium with SMC Capitals, Kotak Mahindra Capital and Enam Securities are the other Book-Running Lead Managers, the company said in a statement.
Hindustan Copper plans to hit the market with its FPO by September-October.
"We are expected to file the draft red herring prospectus (DRHP) by the end of July. The 20 per cent FPO may well hit the market by September-October," Hindustan Copper Chairman and Managing Director Shakeel Ahmed had earlier said.
Mines Minister B K Handique had earlier said the share sale could generate around Rs 4,000 crore. The Cabinet had last month cleared the divestment plan.
At present, 0.41 per cent of Hindustan Copper's stake is held by the public. The proposed FPO will see the government holding coming down to 81.45 per cent from 99.59 per cent at present.
Consequent to the FPO, the government will divest 10 per cent of its holding, while the company will issue fresh shares in the same proportion.
Hindustan Copper may see further equity dilution in the next few years to meet market regulator Sebi's guidelines making it mandatory for listed companies to have a 25 per cent public float.
The company's shares today ended at Rs 486.10, up 0.48 per cent on the Bombay Stock Exchange.
