Hindustan Copper: Govt mulls stake sale!
Shares of Hindustan Copper surged more than 10% Tuesday on media reports suggesting the Centre may look at strategic sale of the only producer of copper concentrate in India, in a bid to meet the ambitious disinvestment target of Rs 2.1 trillion for 2020-21.
NITI Aayog Vice-Chairman Rajiv Kumar is set to chair a meeting on October 27 to discuss the possibility of strategic disinvestment of Hindustan Copper, the media report suggested. The NITI Aayog makes recommendations on strategic sales of state-owned units to the government.
Hindustan Coppers’ operation continues to struggle from the paucity of funds. Last month, it’s board of directors was scheduled to meet for deliberating on various proposals, including raising of up to Rs 200 crore via preference shares. However, the meeting was cancelled due to lack of time.
The board also could not take up a proposal to modify the object clause of its qualified institutional placement (QIP) to ‘expansion/ capex plan and general corporate purpose’ in place of ‘expansion/capex plan’.
Meanwhile, Hindustan Copper entered into a memorandum of understanding with Hindalco Industries for long-term purchase and sale of copper concentrate produced by the former.
With this partnership, the companies have moved towards import substitution, reducing the nation’s dependence on copper concentrate sourced from abroad.
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