India has raised about Rs 400 crore by selling a 6.8 percent stake in state-run miner Hindustan Copper Ltd, the finance ministry said on Thursday.
The government put an auction for selling the shares . After the sale, its stake in the miner will come down to 76.05 percent, the ministry said.
“The Government of India has disinvested 6.83 per cent of paid up equity in Hindustan Copper Limited through Offer for Sale (OFS). The Government is likely to get approximately Rs 400 crore from this disinvestment,” a finance ministry statement said.
The prices for the share sale was fixed at 64.75 per share and retail investors were given a 5% discount on the cut off price of the non retailers.
Institutional investors bid for 5.05 crore shares, which is 1.71 times the 2.96 crore shares on offer for them.
“As a result, the Government revised the total offer size to 6.83 per cent of the paid-up capital,” the finance ministry statement said.
The government has already raised over Rs 8,428 crore through disinvestment in five companies, including selling stake in L&T through SUUTI, and one share buy back.
India aims to raise a total Rs 72,500 crore rupees through the sale of partial government stakes in state-run and private firms during the year to March 2018, which will contribute to meeting the government’s fiscal deficit target of 3.2 percent of gross domestic product.