Stock Market

India selling 7% stake in miner Hindustan Copper

India selling 7% stake in miner Hindustan Copper

India is selling a 7 percent stake in state-run Hindustan Copper Ltd in stock market deals over two days to Friday, potentially raising the government 4.02 billion rupees (USD60.5 million).

The government, which owns almost 90 percent of the miner, is selling 64.7 million shares, and has set a floor price of 62 rupees apiece, according to a regulatory filing.

The sale is part of the government’s asset sale plan to raise funds to help plug its deficit. For the year to March 2017, it plans to raise 565 billion rupees from such sales.

The government also needs to cut its stake in state-run companies to 75 percent over a period of time as capital market rules require publicly traded companies to maintain a minimum 25 percent float.

SBICAP Securities, ICICI Securities, Edelweiss Securities and Deutsche Equities are managing the sale.

(USD1 = 66.4886 rupees)

(Reporting by Promit Mukherjee; Editing by Adrian Croft)