Hind Copper is top loser

Hindustan Copper is currently the top loser on the BSE. The stock price has slipped almost 8% to Rs.65.25 and continues to trade around the same levels.

The market is mighty miffed that the Govt is selling stake at a discount – the floor price is fixed at Rs.64.75 and this was at a discount of 8.35% to yesterday’s closing price of Rs.70.35.

The company has stated, “it plans to sell up to an aggregate of 37 million equity shares of face value of Rs. 5 each of Hindustan Copper, on August 02, 2017 (for non-Retail Investors) and August 03, 2017 (for Retail Investors and for non-Retail Investors who choose to carry forward their bids) with an additional option to sell up to 37 million equity shares of the company.”

Currently the Govt of India holds 82.88%, way above the SEBI threshold of 75%. In the current OFS, the Govt will sell 4% stake and after exercising the green shoe option, Govt holding will come down to the required 75%.