Hindustan Copper FPO Review

 

Hindustan Copper FPO Review

Hindustan Copper Limited FPO will be in January 2011. Earlier it was speculated that the FPO will be in early December 2010. But now, the plan is postponed and it will be probably in Jan 2011.

Through this FPO, the company is planning to raise Rs.3000-5000 crores from public.

Hindustan Copper (HCL) is the government owned PSU which is the only vertically integrated copper producer in India. The company was incorporated in 1967 by government of India.

Its main plants are situated in Rajasthan (Khetri, Kolihan), West Bengal and Jharkhand. It’s India’s largest copper producer.

HCL also produces Gold, Silver, Nickel Sulphate, Selenium, Tellurium and Fertilizer as by products. It is the first Indian Copper Producer to be accredited with ISO 9002 certification for Continuous Cast Rod Manufacturer at its Taloja Plant and for manufacture of Cathode at its Refineries both at Indian Copper Complex, Ghatsila, Jharkhand and Khetri Copper Complex, Khetri, Rajasthan

Hindustan Copper Limited is engaged in mining and smelting of copper, having its production facilities and offices at various locations across the country.

I will give this FPO 4 out of 5 stars. Investors can invest in this FPO. This is because the copper price are touching the sky high day by day because of the US economic slowdown and US Government printing more and more money out of thin air. And that’s why the copper mining companies will be in demand in the future.

Hindustan Copper is the leading Copper mining company of the world and that’s why investing in this company will be really worth.

The only thing I advise to the retail investors is that, stay invested for long time horizon say 5 years or even 10 years or more. Because its real value unlocking will be seen on paper over a long time horizon.

Don’t simply invest in this FPO for huge short term gains on listing like Coal India IPO. But keep these stocks for the long time horizon.