The Telegraph
Thursday , November 22 , 2012
Since 1st March, 1999
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Friday date for Hind Copper selloff

New Delhi, Nov. 21: The government will finally kick off its divestment drive for this fiscal on Friday with a sale of 4 per cent of its stake in Hindustan Copper Ltd.

The floor price for the sale will be announced tomorrow after market hours, divestment secretary Haleem Khan said. The sale will be done through an auction that will take place between 9:15am and 3:30pm on Friday.

Khan said either Oil India or NMDC would be divested before December 20, while the NTPC selloff might happen in January. On September 14, the Centre had approved the divestment of 9.59 per cent in Hindustan Copper.

Mines minister Dinsha Patel today said the divestment would be done in two tranches and the sale of the remaining 5.59 per cent stake would be announced later.

After divestment, the Centre’s holding will come down to 90 per cent in the firm, whose paid-up capital stood at Rs 462.61 crore as of March, 2012. In 2011-12, the leading domestic copper producer had posted its best net profit at Rs 323.44 crore, while net sales stood at Rs 1,489.61 crore.

The Centre, which aims to garner Rs 30,000 crore through divestment in PSUs this fiscal, has not launched a single share sale so far.

Last month, the Centre had indefinitely deferred the IPO of Rashtriya Ispat Nigam Ltd because of differences with the merchant bankers over the price band.