The state-owned copper company Hindustan Copper Limited (HCL) has recorded an over eight-year high demand outlook. The company has rallied 25 percent in the past three trading days. It was quoting at its highest level since November 2012.
With the past three days rally, the market price of HCL appreciated by 58 percent over its Qualified Institutional Placement (QIP) issue price of Rs 119.60 per share. In April, the company had raised Rs 500 crore through issuance of shares to institutional investor to fund the ongoing capex or expansion of the company.
HCL expects that copper concentrate will be its primary product in the future. Accordingly, the company is proceeding to expand its mining capacity from approximately 3.97 MTPA to 12.20 MTPA in Phase-I and subsequently 20.20 MTCA in Phase II.