The CCEA on August 01, 2018 gave its approval for the issuance of fresh equity of up to 15 per cent by state-owned Hindustan Copper Limited (HCL) that would reduce the govt shareholding to 66.13%. First, this move will enable the company to raise around Rs 901 crore which would be mobilised for its expansion plans. Secondly, it will help to comply with SEBI’s mandatory norm which suggests that a PSU should have a minimum public shareholding of 25 per cent. It may be mentioned in the new scenario Govt’s shareholding will come down from 76.05% to 66.13%. Further, the paid-up Share Capital of HCL will increase from the present Rs. 462.61 crore to Rs. 532.00 crore.

CMD Santosh Sharma, on August 02, addressed the media persons in a press conference in Lutyens Delhi and briefed that HCL will issue 138,782,700 equity shares of face value of Rs 5 to the extent of 15% of paid-up equity capital through qualified institutional placement (QIP) route. At the current market price, HCL can raise around Rs 900 crore through the proposed fresh equity issuance. In its expansion plan HCL is aiming at increasing its smelting capacity to 100,000 tonnes per annum from the existing 70,000 tonnes.

HCL, with a market cap of Rs 6,004.66 crore, is targeting a production level of around 1.90 lakh tonne of metal in copper concentrate, which will meet around 30% of the refined copper demand of the country. The proposed expansion plan would create employment opportunities for 9,300 persons approximately, the release further said.