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Hindustan Copper hopes to get Cabinet nod for FPO in April

05 Apr 2010 Evaluate

State-owned Hindustan Copper is hopeful of getting the government''s approval in April for its share sale programme, which is expected to raise a total of about Rs 10,000 crore. The share sale in HCL is now proposed in a single phase against the earlier plan of two-tranche FPO. The government plans to sell 10 per cent of its stake in HCL through FPO. HCL will also be raising fresh equity in the same proportion. The government holds 99.59 per cent stake in the firm.

 

The divestment proposal has already been vetted by the Department of Disinvestment and the Ministry of Finance. Now the Ministry of Mines, the administrative agency of the PSU, is in the process of finalising the draft note which would be placed before the Cabinet.

 

The LME prices act as a benchmark for base metals like copper, zinc, lead. Copper prices on the LME fluctuated between USD 7,000 a tonne in December last year and USD 5,700 per tonne in February and then recovered to USD 7,880 a tonne level in last month. The company did not have a 'good' April-November period and is unlikely to meet its production target of 3.6 million tonne copper ore for FY''10. HCL plans to fund its Rs 3,500-crore expansion programme by raising equity.

 

The government needs the divestment proceeds to part fund its social sector and infrastructure programmes. The Centre has targeted to generate Rs 40,000 crore in this fiscal through disinvestment in PSUs like SAIL, CIL, HCL. PTI SCV NS.

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Hindustan Copper Share Price

569.60 5.90 (1.05%)
17-Apr-2026 16:59 View Price Chart
Peers
Company Name CMP
Hindalco 1038.95
Vedanta 787.60
Hindustan Zinc 592.35
Jain Resource Recycl 420.90
Gravita India 1639.80
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