10% discount for Hindustan Copper OFS turns 'stale'

The government of India announced a 3% equity stake sale in metals major Hindustan Copper on Monday, with an additional 3% available via the green shoe option. The floor price was set at Rs 514 per share, resulting in a nearly Rs 2,982 crore OFS size. The floor price translates to a discount of over 3% from the stock's previous closing price of Rs 531.40 per share on the NSE.

Despite strong demand from non-retail investors, the issue is seeing a stale retail interest with the government reserving 10% for them. Analysts suggest that the 10% discount on opening day may not be sustainable, as the stock had a significant single-day plunge of over 7%, its worst in around five months.