Govt expands Hindustan Copper stake sale amid strong OFS demand
The floor price of ₹514 per share represents a more than 10% discount to the previous closing price, piling selling pressure on the stock. At the floor price, the Centre would raise about ₹2,982 crore by selling the full 6% stake, including the 3% greenshoe option to meet excess demand.
The government has expanded its stake sale in Hindustan Copper Ltd amid strong demand for the initial public offering (OFS). Institutional investors showed keen interest, bidding 3.41 times the shares available, prompting the Centre to utilize the entire greenshoe option to meet the excess demand. Dipam secretary Arunish Chawla confirmed the OFS received an enthusiastic response from institutional investors, resulting in oversubscription.
The government sought to sell a 3% stake in Hindustan Copper, initially offering 2.90 crore shares with an option to sell another 3%, totaling a potential 6%. The discounted floor price of ₹514 per share represented a significant 10% discount to the previous closing price, generating selling pressure. If the full 6% stake is sold, the government expects to generate around ₹2,982 crore.
Retail investors and eligible employees can participate on Wednesday, with 10% of the offer reserved for retail investors and up to 25,000 shares set aside for eligible employees. Hindustan Copper, a central public sector enterprise, explores, mines, and processes copper ore, with the government holding a 66.14% stake. The stake sale is part of the government's broader disinvestment program, which has already raised nearly three-quarters of its ₹80,000-crore fiscal year 2027 target.
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