Kolkata: The Government of India has yet not decided the quantum of stake it intends to disinvest in copper mining major Hindustan Copper Ltd in the current fiscal 2012-13, media reports said, citing a government official.
"The government has not yet decided on the quantum of disinvestment in Hindustan Copper...It will depend on which route the disinvestment will be carried through - institutional private placement or public offer. Consultation is going on in this regard," the official told reporters but declined to be quoted.
The government will seek approval of Cabinet Committee on Economic Affairs (CCEA) for offloading its stake in the copper major. Currently, it holds 99.5% stake in the company.
"Currently, we are seeking comments from the concerned ministries to get the company listed on stock exchanges and after that a cabinet note would be prepared for CCEA approval," the official added.
The source pointed out that if the government went for the private placement route, the divestment quantum will be lower compared to public offer as market regulator Securities and Exchange Board of India (SEBI) mandates minimum sale of 10% floating stock in a public offer.
Earlier, in fiscal 2010-11, Hindustan Copper had proposed issuance of 10% fresh equity, and 10% stake sale through the follow on public (FPO) route, but later in 2011-12 the company withdrew its FPO plans as the company's cash flow position improved to finance its expansion plans.
Disinvestment Secretary Mohammad Haleem Khan in April told the Press Trust of India that the stake sale process in state-run public sector undertakings (PSUs) for financial year 2012-13 will start from June.
The other state-companies which are on the government's radar are National Aluminium Co Ltd, Steel Authority of India Ltd, Neyveli Lignite Corp Ltd, Hindustan Aeronautics Ltd and Rashtriya Ispat Nigam Ltd. The government may offload 5% to 10% in each company.
The government has pegged the disinvestment target for fiscal 2012-13 at Rs 300 billion.