Divestment process to kick start with Hindustan Copper stake sale on November 21

Beginning the disinvestment process this year, the government is likely to sell stake in Hindustan Copper through auction route on November 21.

"November 21 is the tentative date," Hindustan Copper Ltd's (HCL) chairman K D Diwan told reporters today on the sidelines of a Global Investors Meet.

He, however, declined to comment further on the disinvestment programme.

On September 14, the government had approved disinvestment of 9.59 percent equity of the company through an offer for sale of shares through stock exchanges.

Post disinvestment, the government's shareholding would come down to 90 per cent in the company, whose paid up capital was Rs 462.61 crore as on March, 2012.

In 2011-12, the leading domestic copper producer had reported its best ever net profit at Rs 323.44 crore, while its net sales stood at Rs 1,489.61 crore.

On Monday, the company will be announcing its results for July-September quarter. Hindustan Copper Ltd shares closed 5.83 per cent up at Rs 268.50 on Friday.

The government, which is aiming to garner Rs 30,000 crore by divesting its shares in the central PSUs in the current fiscal, has not launched a single share sale so far.

Last month, it had indefinitely deferred the initial public offer (IPO) of Rashtriya Ispat Nigam Ltd due to differences with the merchant bankers over the price band of the issue.

During the current fiscal, it is also aiming to sell shares in NALCO, SAIL, MMTC, NMDC and Oil India among others.