Hindustan Copper nosedived by over 10 per cent on the Bombay Stock Exchange on Wednesday amid media reports that the company's follow-on public offer may be priced at a discount of over 56 per cent vis-a-vis Wednesday's closing price.
Reacting sharply to the news, shares of the state-run firm tumbled by 10.41 per cent to hit an intra-day low of Rs 301.15 on the BSE. The stock managed to trim some of its initial losses by the end of trade and settled at Rs 320.15, down 4.76 per cent.
According to media reports, the price band for the issue could be Rs 120-140 per share, translating into a 56.27 per cent discount vis-a-vis Wednesday's closing price.
Investors opted for profit-booking in anticipation of picking up the shares later at an almost throwaway price and the counter ended lower by 3.07 per cent at Rs 325 on the National Stock Exchange as well.
On the volume front, over 36 lakh shares of the company were traded on the two bourses.
The scrip had tanked by over 18 per cent in the final session of the 2010 calendar year on December 31 due to the same reason.
The company's FPO, which is expected to raise Rs 4,000 crore, is likely to be launched either in February, 2011, or after the Budget session.
Meanwhile, the BSE's 30-share benchmark Sensex index finished the day at 20,301.10, down 197.62 points.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
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