PTI reported that the government's 4% stakesale in Hindustan Copper was on November 23rd 2012 over subscribed, marking the ambitious INR 30,000 crore disinvestment program that is crucial for meeting the fiscal deficit target.
According to data available from the stock exchanges, a total of 3,89,12,793 shares worth INR 603.14 crore were bid for at the close of trading hours. A total of 3,70,08,720 shares or 4% stake were put on offer in the first tranche. The shares were offered at INR 155 apiece, a 41% discount to yesterday's closing price of Hindustan Copper on BSE.
HCL shares closed at INR 213.05 down 20% from its last close on BSE. Actual bids may be even higher as stock exchanges are yet to complete the compilation of data of all the bids that were received since the opening of the process at 0915 hours this morning. It closed at 14.30hrs.
Stake sale in HCL kick starts the government's disinvestment plan which is targeting INR 30,000 crore in this fiscal financial year (2012-13). Though the minimum target for the government is to divest 4% of its 99.59% stake in HCL, the offer size can go up to 9.59% if investors respond well.
HCL had kept 25% of the issue reserved for mutual funds and insurance companies. No single bidder other than mutual funds and insurance companies shall be allocated more than 25% of the size of the sale. The share sale took place on a separate window of the stock exchanges BSE and NSE.
