CCEA approves disinvestment in Hindustan Copper Ltd. and Coal India Ltd.

The Cabinet Committee of Economic Affairs (CCEA) today approved disinvestment in Coal India (CIL) and Hindustan Copper Ltd. (HCL). The Cabinet has approved 10% government stake sale in Coal India. In case of Hindustan Copper, the Cabinet has decided to disinvest through 10% fresh equity sale.

FPO of Hindustan Copper is likely to come in the market in the month of September this year. Hindustan Copper is in the process of appointing merchant banker for the same.

Government is going to raise Rs 40,000 crore from disinvestment in this year. The said stake sale is a part of government’s disinvestment strategy.

The government is planning to sell its stake in 10 companies, including MMTC, CIL, SAIL and RINL this fiscal. Last fiscal, it had raised Rs 25,000 crore through stake sale in Oil India, NMDC, REC and NTPC.

Hindustan Copper is currently quoting at Rs 519.15 which is 10.47% higher than previous close. Its share price has managed to hit intraday high of Rs 537 and low of Rs 471. Total traded quantity of shares of Hindustan Copper is 4,393,633 on NSE at 11.46 hrs IST.

Hindustan Copper is a public sector enterprise. Government owns 99.59% in Hindustan Copper. This is the only company which encompasses mining, beneficiation, smelting, refining and casting of refined copper metal.

Coal India is the leader in Indian coal sector. It is largest coal producing company in the world. Its operations are spread in 81 mining areas and it owns 7 wholly owned coal producing subsidiaries.