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Home » I.P.O. / Offerings » Basic Industries » Hindustan Copper Talks Of FPO: 20% More Will Go To The People |
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Hindustan Copper Talks Of FPO: 20% More Will Go To The People
by Kaushal Trivedi | December 18,2009 - 11:40 AM
Topics : I.P.O. / Offerings
Industries : Basic Industries
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Hindustan Copper plans to come out with a FPO to raise Rs 1,700 crore which will hit the market early next year.
Seems like a 20% to the public is planned - of which GoI intends to directly offload 10% and the other 10% comes through fresh issuance.
New Minimum Float Rules make it mandatory for 25% float with the public while listing - but being a PSU and one with large number of shares on offer - 20% might just be enough for listing.
The FPO would be a part of GoI 'Grand Divestment Design' to reduce the fiscal deficit.
There are 214 operational centrally owned public sector companies, of which only 160 are profit making. Of these only 44 are listed in stock exchanges and in 14 of these the government continues to hold more than 85 per cent. HC, is one of these 14.
The mechanics of sale has been "For profitable PSUs already listed, the minority stake sale will be carried out either in conjunction with a public issue of fresh equity by the PSU or independently by the government through an offer for sale." - at general level
Hind. Copper plans to raise output by 3.5 times in five-seven years' time through reopening of closed mines, optimising production from existing mines and acquisition of new ones' -(Sounds funny..with all the chinese mining in Africa and talks of Global Economy in a secular 7 year bear market - but anyways)
Hindustan Copper's annual ore production, at present, is 3.19 million tonnes, which it plans to take up to 11.4 million tonnes by 2019.
Company's chairman Ahmed said "we have started with a private player in Namibia for acquiring mining leases"
'We are also eyeing Afghanistan ( OH MAY GOD - IN AFGHANISTAN - makes me want to believe that RAW is a big player in Afghanistan) and Chile to get copper mines,' Ahmed said.
The company expects to touch a net profit of Rs.100 crore in the current fiscal, he said.
The FPO will dilute 10% stake and the funds will contribute to half of the Rs.3500 expansion plan.
Presently, the Government owns 99.59% stake in the company.
While 2008-09 was a bad year for Hindustan Copper, which posted a net loss of Rs 10.3 crore, it has seen a revival of sorts for the third quarter of 2009-2010 posting a net profit of Rs 14.46 crore. (THAT on a sale of 1000 Cr plus and LME copper's recovery)
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| There is no data for the current transaction |
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Shilpi Cable Files DRHP To Raise Rs 56 Cr Via IPO
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September 03, 2010, 03:58 PM | Deeshesh Chheda
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Radio frequency (RF) cables manufacturer, Shilpi Cable Technologies Limited (SCTL) has filed DRHP with SEBI to raise Rs.55.87 Cr.
It will use the IPO proceeds to set-up a wire and cable assembly shop, expand its product portfolio and manufacture cables for 3G networks. It will also manufacture low voltage power cables and cable accessories.
D and A Financial Services is the sole book running lead manager for the issue.
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