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HCL to solicit governments stake dilution through public offering
 
HCL to solicit governments stake dilution through public offering
Hindustan Copper (HCL) ,the only integrated copper producer in India, will ask the government to consider diluting a part of its 99.48% stake in the company through a public offering.As of now, banks and FIs hold around 0.12% in the company through a public,while public holding stands at 0.11% .Private corporate bodies hold 0.29%.The quantum of the stake to be divested will depend on the companys requirement of funds, which can be finalised only after the exact capacity expansion plans are finalised. The earlier attempt by the National Democratic Alliance to privatise the company had failed as no attractive bids were received by the disinvestment ministry.HCL shares closed 1.7% higher at Rs 59.5 on the BSE on Monday.The company had been incurred losses since 1999.But its fortunes turned around in 04-05 when it posted a profit of Rs56 crore due to high copper prices.The HCL board has been asked by the government to submit a recast plan to the Board for Reconstruction of the Public Sector Enterprises.The public offer plan will be a part of the report.The HCL revival plan will include mine expansion projects and fixing of crucial equipment.According to sources, the company is close to finalising a proposal to be submitted to BRPSE,which will help in turning around the fortunes of the firm.
Posted On : 12/13/2005 12:26:50 PM

 
 
 
HCL to solicit governments stake dilution through public offering