Hindustan Copper recast plan on cards
The Union ministry of mines is slated to hold a meeting next week to deliberate on a capital restructuring plan proposed by Hindustan Copper.
By TNN |
KOLKATA: The Union ministry of mines is slated to hold a meeting next week to deliberate on a capital restructuring plan proposed by Hindustan Copper.
The package is aimed at cleaning up the balance sheet of the company, which is now high on strong copper prices. The plan will be discussed in the meeting and once it is approved it will be sent to the Board for Reconstruction of Public Enterprises (BRPSE).
If it is okayed by BRPSE, the plan will then be considered by the Committee of Secretaries (CoS) and thereafter, put up for approval by the Union cabinet. As part of the financial restructuring plan, HCL has suggested a three-pronged initiative to wipe out its accumulated losses of Rs 723 crore.
While one part of the exercise would involve capital reduction, with its losses set off against equity. HCL has a large equity base of Rs 948 crore. With HCL earning healthy profits, a part of the losses is also proposed to be made up through internal accruals.
A surge in copper prices in recent months has seen HCL, a public sector copper major, bounce back into the black. The trend is likely to continue with copper for delivery in 3 months crossing $7,600 per tonne at the LME.
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