State-owned Hindustan Copper Ltd on Thursday (May 22) said it will consider raising up to ₹500 crore through the issuance of non-convertible debentures (NCDs) or bonds on a private placement basis, at its upcoming board meeting scheduled for May 27.

"...it is informed that a meeting of the Board of Directors of Hindustan Copper Ltd (HCL) will be held on 27.05.7025 to, inter alia, consider the following: (i) Recommendation for seeking approval of shareholders to offer, issue and allot secured or unsecured non-convertible debentures or bonds on private placement basis up to ₹500 crore," according to a stock exchange filing.

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In a regulatory filing, the company said the proposed issue could involve either secured or unsecured instruments and would be subject to shareholder approval. The board will review and potentially recommend the fundraising plan as part of the meeting agenda.

Q4 results

Hindustan Copper's EBITDA margin surged by over 600 basis points year-on-year to 39.95% in the March quarter, driven by a sharp decline in costs. The company's other expenses fell by 4% from last year, while employee costs and power & fuel costs declined by 21% each year-on-year.

The lower costs, though, did not reflect in the company's bottomline, as it declined by 6% to ₹124.8 crore, compared to ₹132.2 crore during the same period last year.

Also Read: Hindustan Copper Q2 Results | Net profit soars 68%, revenue climbs 36%

Other income slid 62% year-on-year (YoY). Revenue remained flat at ₹565 crore, while EBITDA increased by 21% to ₹225.7 crore during the quarter.

As of March 2024, the government held a 66.14% stake in the company, while LIC had a 6.88% stake. Foreign institutions have a 3.13% stake, while Quant Mutual Fund owns a 2.38% stake in the company.

Shares of Hindustan Copper Ltd ended at ₹226.50, down by ₹2.90, or 1.26%, on the BSE.