Hindustan Copper Limited (HCL), a Government of India enterprise under the Ministry of Mines, has announced that a meeting of its Board of Directors will be held on 27th May 2025. The purpose of the meeting is to consider a proposal to offer, issue, and allot secured or unsecured non-convertible debentures (NCDs) or bonds on a private placement basis, up to an amount of Rs 500 crore.

This regulatory communication, made in line with Regulation 29 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, follows an earlier filing dated 17th May 2025.

The decision will be subject to shareholder approval, and will form part of the company’s capital-raising initiatives aimed at meeting strategic or operational funding requirements.

Issuance Details

The proposed instrument may include:

• Secured or unsecured bonds/NCDs

• Issuance via private placement, targeting qualified institutional buyers and accredited investors

• Up to Rs 500 crore aggregate value

• Structure to be decided based on market demand and internal financial planning

The company’s decision to opt for non-dilutive debt instruments suggests a focus on maintaining shareholding stability, while still accessing funds for infrastructure, expansion, or working capital.

Compliance with Insider Trading Code

In line with the company’s Code of Conduct for Regulation, Monitoring and Reporting of Trading by Insiders, the trading window has been closed since 21st March 2025, as per earlier communication (Letter No. HCL/SCY/SE/2024). This trading window will remain closed till 29th May 2025 for all Designated Persons and their immediate relatives.

This step is consistent with best corporate governance practices, ensuring no unfair advantage is taken by insiders around sensitive financial announcements.

Strategic Financial Management

By considering the issuance of bonds through private placement, Hindustan Copper seeks to:

• Strengthen its balance sheet

• Support ongoing capital and operational expenditure

• Optimise borrowing costs

• Maintain compliance with SEBI norms while improving liquidity

The move reflects the company's disciplined financial planning approach and its aim to leverage market opportunities to raise long-term capital without diluting equity.

About Hindustan Copper Limited

Hindustan Copper Limited (HCL), incorporated in 1967, is the only vertically integrated copper producer in India, engaged in a range of activities from mining to beneficiation, smelting, refining, and casting of refined copper metal.

The company operates mines and plants across Rajasthan, Madhya Pradesh, Jharkhand, and Maharashtra. It plays a vital role in India’s non-ferrous metals sector, supporting both domestic consumption and industrial exports.

HCL’s strategic roadmap includes expanding its mining capacity and backward integration to reduce import dependence, with long-term investments in sustainable and efficient production processes.

Regulatory Outlook

This development aligns with a broader trend among Indian PSUs and listed companies to raise debt capital through market-linked instruments rather than conventional loans. The regulatory framework under SEBI’s Listing Regulations ensures transparent and accountable capital raising mechanisms.

Conclusion

The upcoming Board meeting on 27th May 2025 will be critical in deciding HCL’s next phase of capital mobilisation. The Rs 500 crore bond proposal, subject to shareholder approval, represents a strategic financial step for the company.

Stakeholders, including investors and analysts, will be keenly observing the outcome, especially amid rising corporate bond activity in Indian capital markets. The company’s adherence to governance norms, insider trading regulations, and disclosure practices also reinforces its corporate credibility.

For further information
Hindustan Copper Limited
Company Secretary: Mr. Mritunjay Kumar Dev
Date: 22nd May 2025

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