To fund its expansion / capex plans
The Cabinet Committee on Economic Affairs has given its approval for issue of fresh 13,87,82,700 equity shares to the extent of 15% of paid up equity capital at the face value of Rs. 5/- each by Hindustan Copper (HCL) through the Qualified Institutions Placement (QIP) route as per SEBI and other applicable guidelines.As a result, Gol shareholding in HCL 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. 532crore.
HCL will use the proceeds of QIP to meet its expansion/capex plan.
The raising of fund is essential for HCL's expansion plans to achieve production level of around 1.90 lakh tonnes of metal in copper concentrate and thus meet around 30% of the refined copper demand of the country.
The proposed expansion plan would create employment opportunities for 9300 persons approximately.
Expansion projects of HCL are located in the States of Madhya Pradesh, Rajasthan and Jharkhand.
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