Monday, November 29, 1999

All clear for Hind copper, Cil share sale

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New Delhi, June 15 -- The government on Tuesday approved disinvestment of 10 per cent each in Coal India Ltd (CIL) and Hindustan Copper Ltd (HCL), expected to generate around Rs 16,000 crore for the state exchequer. The move is also expected to go a long way in achieving the government's targetted Rs 40,000 crore this fiscal through stake sales in public sector undertakings. The government will offload 10 per cent stake in world's biggest coal company CIL through an initial public offering. The IPO is expected to generate atleast Rs 12,000 crore, making it the largest public offer ever. HCL will also issue fresh shares equivalent to 10 per cent of pre-issue paid-up capital. This will be in addition to the government selling 10 per cent of its stake in the firm through a follow-on public offer. "In conjunction with the issue of equity, the government will also disinvest its 10 per cent pre-issued paid-up capital of Hindustan Copper," home minister P Chidambaram said after the CCEA meeting. The share sale is likely within six months. "Disinvestment of CIL would be through the book-building process in the domestic market. One per cent of the equity will be offered to employees," Chidambaram said.

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