Despite Rashtriya Ispat Nigam request to defer its initial public offering (IPO) due to low employee morale and in view of a fire at its plant killing 19 people, the government has now decided to launch the public offer of both Rashtriya Ispat Nigam (RINL) and Hindustan Copper, the Department of Disinvestment (DoD) will go ahead with the plan to launch the issue in this quarter. Both this offerings will be the first step of government towards meeting its Rs 30,000 crore divestment target set for 2012-13.
The government is looking forward for diluting 10% from both these companies. RINL is expected to garner Rs 2,500 crore while Hindustan Copper stake sale may fetch Rs 2,000 crore. Government holds 99.59% stake in the copper producer.
Hindustan Copper, the PSU was incorporated in 1967 and is under the Ministry of Mines, Government of India. The company has contributed towards building electrical industry. The copper producer is engaged in a wide spectrum of activities ranging from Mining, Beneficiation, Smelting, Refining and Continuous Cast Rod manufacturer. HCL also produces Gold, Silver, Nickel Sulphate, Selenium, Telurium and Fertilizer as by products.
Beside these two PSUs, government has lined up the IPO/FPO of SAIL, Oil India and Hindustan Aeronautics for disinvestment in 2012-13.
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