Business Daily from THE HINDU group of publications
Saturday, Dec 19, 2009
ePaper | Mobile/PDA Version | Audio | Blogs
Business Daily from THE HINDU group of publications Saturday, Dec 19, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
|
|
|
|
|
Markets
-
IPOs Industry & Economy - Disinvestment Our Bureau Kolkata, Dec. 18 The board of directors of Hindustan Copper Ltd has recommended dilution of 20 per cent stake in the company. The new CMD of the public sector entity, Mr Shakeel Ahmed, said this on the sidelines of a seminar organised by CII here on Thursday. Mr Ahmed said it was decided to peg the dilution at 20 per cent at the recent board meeting. This decision is effectively a recommendation to the Government, which owns 99.59 per cent stake in the listed company. He expected that the Ministries of Mines, Disinvestment and Finance would consider the board's proposal before taking a final call. The board recommendation comes ahead of the Government's decision on disinvestment, likely in the next financial year. Mr Ahmed said Hindustan Copper needed funds for two of its three smelters' operational and mining expansions. Thus apart from divestment, Hindustan Copper has suggested that a follow-on offer would also be necessary to raise funds. The equity dilution would also increase the market float and activity in the stock. Mining Operations of the company in Rajasthan and Madhya Pradesh have been affected by water shortage and the company needs to invest around Rs 50 crore to improve availability. It has also planned to restart mining at some of its unused mines in Jharkhand and Rajasthan. Recovery in LME copper prices have improved the margins for the company but lower scale of operation, both mining and smelting, has forced the topline to decline. The lower cash flow is one of the reasons for seeking funds by Hindustan Copper. Mr Ahmed indicated the company is planning to raise over Rs 1,500 crore to meet its planned expenditures. More Stories on : IPOs | Disinvestment | Metals
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2009, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|