Institutional investors today put in bids worth Rs 327 crore for the government stake in Hindustan Copper Ltd (HCL).
The government is selling 3.70 crore equity shares, or 4 per cent stake, in Hindustan Copper at a floor price of Rs 64.75 apiece through a two-day offer-for-sale (OFS), with an option to issue a similar number of shares in case of over subscription.
Of the 2.96 crore shares offered to institutional investors today, bids for over 5.05 crore shares have come in. The government today exercised the green shoe option to retain excess subscription.
At the floor price of Rs 64.75 a share, subscription of 5.05 crore has generated investor demand worth Rs 327 crore.
The share sale would open for retail investors tomorrow.
The government currently holds 82.88 per cent stake in HCL and the stake sale with green shoe option would help the government meet the minimum public shareholding norm of market regulator Sebi.
Shares of HCL closed at Rs 65.05 today, down 7.93 per cent over previous close on the BSE.
The government has already raised over Rs 8,428 crore through disinvestment in five companies and one share buy back.
The government has budgeted to raise Rs 72,500 crore through stake sale in PSUs. This includes Rs 46,500 crore from minority stake sale, Rs 15,000 crore from strategic disinvestment and Rs 11,000 crore from listing of insurance companies.
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