Hindustan Copper FPO : Opening on 6th Dec 2010

by khalid on 26/11/2010 · 1 comment

The Navratna company of Indian Government, Hindustan Copper Ltd. (HCL) is entering into primary market with an Initial Public Offer (IPO) of —- Equity Shares of Rs 10 each. The IPO is opening on 6th Dec 2010 and the shares will be available for subscription up to 9th Dec 2010. The premium of the issue will be decided through a 100% Book Building Process. The price band for the issue has not been fixed yet. Hindustan Copper Ltd. (HCL) was incorporated on 9th November 1967. It is a Public Sector Enterprise under the Ministry of Mines, Government of India.

The objects of the IPO are to carry out the divestment of —— Equity Shares by the Selling Shareholder and to increase its mining capacity from the present 3.2 million tonnes annually to 12 million tonnes in the next five-six years, and it has envisaged a capital investment of Rs 4,580 crore for this expansion.

Presently the Government of India has 99.59% paid-up Equity Share capital in Hindustan Copper Ltd. (HCL) and post IPO the paid-up Equity Share capital of Government of India will reduce to 81.45%. In the 20% equity share sale, the Government of India is offloading 10% of its stake while the company would issue fresh equity in the same proportion.

The equity shares offered through the IPO are proposed to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

Issue Detail:-
Issue Open : 6th Dec 2010 – 9th Dec 2010
Issue Type : 100% Book Built Issue IPO
Issue Size : —– Equity Shares of Rs 10 each
Issue Size : Rs. 4000 Crores
Face Value : Rs 10 Per Equity Share
Issue Price : Rs. – Rs. Per Equity Share
Minimum Bid Quantity : — Shares (Rs. —- with 1 Lot)
Maximum Bid Quantity : —- Shares (Rs. —— with — Lot)
Listing At : BSE, NSE

Maximum Subscription Amount for Retail Investor : Rs. 200000

The Book running lead managers to the issue are ICICI Securities Limited, IDFC-SSKI Private Limited and SBI Capital Markets Limited.

Registrar of the Issue : Karvy Conputershare Private Limited, Hyderabad.

Note : The proposed follow-on offer of Hindustan Copper Ltd will not hit the market in December. A source in the Union Ministry of Mines told Business Line that the State-owned company’s FPO, consisting of 10 per cent divestment and another 10 per cent of fresh issue of equity, is likely to happen after January 2011.

Stay tuned to BelltheBull Blog for more on Hindustan Copper Ltd. (HCL) FPO !

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