BCCL
Shares of state-run copper manufacturing company spiked more than 11% today after reports said that Vedanta Group is planning to buy the government's stake in the company as and when it is put up for disinvestment.
The news triggered the stock as Vedanta could be the suitable buyer. Currently, the government holds 72% stake in the company.
First up, if Vedanta buys anything more than 25%, it has to buy another 20% from the public shareholders for the same price it pays the government. This is called an open offer.
Secondly, a similar disinvestment a couple of decades ago, led to the sale of Hindustan Zinc to the Vedanta Group and it has been a major wealth creator for investors since then.
Hindustan Copper is India's only vertically integrated copper producing company encompassing mining, beneficiation, smelting, refining and casting of refined copper metal. The company has a market capitalisation of ₹12,266 crore.