I-bankers get time till June 14 to bid for Hindustan Copper issue

KOLKATA: State-owned Hindustan Copper, which is expected to receive Cabinet nod for a 20% disinvestment this week, has postponed the last date for submitting bids from merchant bankers to manage its ‘further public offer’ slated to hit the market in September 2010.

“We’ve already floated tenders inviting bids for appointment of book running lead managers (BRLMs). However, the last date for submission of requests has been shifted to June 14. Earlier, the bids were due to be submitted on June 11,” Mr Shakeel Ahmed, chairman and managing director of Hindustan Copper(HCL) told ET. HCL plans to appoint five Category-I merchant bankers who will work as a team of BRLMs.

“We expect to get Cabinet approval for our issue next week. In the meantime, we can go ahead with the process of appointing intermediaries including advertising and legal firms connected with the process,” added Mr Ahmed.
HCL’s target for the full 20% is around Rs 4,000-5,000 crore, depending on market conditions. While HCL will retain the amount raised from fresh issue of 10% equity, the proceeds from the divestment of 10% government stake will go to the exchequer.

The funds will be utilised by HCL, the largest domestic copper mining company, to finance expansion of mines both within the country and abroad.

Earlier, speaking at an event organised by the Millennium Institute of Energy and Environment Management on occasion of World Environment Day on Saturday, Mr Ahmed pointed out various policy aberrations that come in the way of fulfilling India’s energy needs.

“In the transport sector, an energy deficient country like India, should perhaps use diesel locomotives which have higher horse power ( HP) to power its railway network, rather than invest in electrified tracks. Use of small diesel powered gensets across households lead to higher consumption of fossil fuels and are also more polluting,” he added.

India should also focus on village level planning for meeting energy needs through smaller bio gas units instead of investing in high cost transmission lines to take power to rural areas.