Shares of Hindustan Copper rose over 3% in early trade on Monday as investors cheered the state-owned mining company’s fundraising plan. The company in an exchange filing on Saturday said its board would meet on June 30 to raise funds by issue of equity shares and debts.
"A meeting of the board of directors of Hindustan Copper Ltd (HCL) will be held on 30th June 2022 to inter alia, consider and recommend resolutions seeking approval of the shareholders of the company to authorise the board of directors…to offer, issue and allot secured or unsecured non-convertible debentures or bonds on a private placement basis up to ₹500 crore," the company said in a BSE filing.
The PSU firm intends to issue 9.7 crore equity shares of face value of ₹5 each through a qualified institutional placement method. Besides, it will also issue and allot debentures or bonds worth around ₹500 crore on a private placement basis.
Cheering the news, Hindustan Copper shares opened higher at ₹86.5, against the previous closing price of ₹85.35 on the BSE. During the session so far, the metal stock gained as much as 3.2% to hit an intraday high of ₹88.1, driven by a surge in volume trade. At the time of reporting as many as 2.89 lakh shares worth ₹2.52 crore changed hands over the counter as compared to the two-week average volume of 3.83 lakh stocks. The market capitalisation of the midcap stock rose to ₹8,442.12 crore.
Technically, the stock traded in a bearish range, lower than its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. It has risen 3% in a week, while it has fallen 11% in one month and 30% since the beginning of the calendar year 2022 (year-to-date basis). In the last one year, the stock has fallen more than 41%.
For the January-March quarter of 2022 (Q4 FY22), the mining company posted a consolidated net profit of ₹88.99 crore, as against a net loss of ₹36.81 crore in the year-ago period. The consolidated income rose to ₹561.47 crore over ₹531.55 crore in the year-ago period. For the full financial year 2022, profit before tax jumped 338% to ₹381.76 crore, while it clocked the highest ever net turnover of ₹1,812 crore. HCL Board also recommended the highest ever dividend payment of 23.20% of capital for FY22 as against 7.32% in the previous fiscal. The payout on this account is estimated at ₹112.17 crore.