The central government has been rather aggressive with the disinvestment strategy and we have already witnessed a lot of state run companies coming up with IPO’s as well FPO in the case of NMDC FPO.
We had earlier published an extensive list of Companies under the disinvestment radar and take or give few, the government has indeed managed to raise decent amount of cash from the partial stake sell in a few of these companies.
Looks like government is not finished yet and is contemplating taking more state run companies the disinvestment route. Hindustan Copper disinvestment seems to be on top of the agenda right now.
The stakes are high here to as quoted by Shakeel Ahmed, CMD of Hindustan Copper
The company expects to raise Rs 4,000 crore from the issue expected to be out in the market by September
Disinvestment Details for Hindustan Copper
Proposal to sell 184 million share which will comprise of 10% divestment of stake and 10% from fresh equity. Currently, the government owns 99.5% of the company.
Will the Hindustan Copper FPO be worthy of an investment
It might be too early to tell since the Indian Stock Markets and the global factors are far from stable. Moreover, the company has not had a really been doing rather good lately. It stopped using one of its smelter since late 2008 to reduce the operational overheads. However, the company has given a good guidance in terms of production expecting the ore output for this fiscal to be at 3.6 Mn tonnes as against 3.2 tonnes last fiscal
What do you think? Will the disinvestment provide some fresh life into the company along with the obvious cash surplus which will see the company compete with the likes of the top copper producers like Sterlite and Hindalco