New Delhi: The Government’s offer for sale (OFS) in Hindustan Copper Ltd. (HCL) received a strong response from institutional investors on the opening day, with the issue subscribed 3.41 times in the non-retail category.
Investors submitted bids worth nearly ₹4,580 crore for the 3% base offer, prompting the Centre to exercise the entire 3% green-shoe option. As a result, the total stake being offered through the OFS will increase from 3% to 6%.
Hindustan Copper OFS Subscribed 3.41 Times
According to stock exchange data, investors bid for 8.91 crore shares against 2.61 crore shares offered in the non-retail category.
At the OFS floor price of ₹514 per share, the bids were worth approximately ₹4,580 crore.
The government had initially planned to sell a 3% stake in Hindustan Copper, with an additional 3% available under the green-shoe option in case of strong demand.
DIPAM Secretary Arunish Chawla said in a post on X that the government has decided to exercise the entire green-shoe option.
Read also: Hindustan Copper Plans ₹7,000 Crore Investment to Expand Mining and Boost Copper Production
Government to Offer 6% Stake in Hindustan Copper
With the full green-shoe option being exercised, the government will now offer a total 6% stake in Hindustan Copper.
The key details of the expanded OFS are:
- Base offer: 3%
- Green-shoe option: Additional 3%
- Total stake on offer: 6%
- Approximate shares: 5.22 crore
- OFS floor price: ₹514 per share
- Notional value at floor price: Around ₹2,683 crore
The actual proceeds received by the government will depend on the final allocation price.
HCL Share Price Falls 7.04%
The OFS floor price of ₹514 per share represented a 10.38% discount to Hindustan Copper’s closing price on the BSE on Monday.
The stock came under pressure following the announcement of the government’s stake sale. Hindustan Copper shares declined 7.04% on Tuesday to close at ₹533.20 per share on the BSE.
The market reaction came as investors assessed the impact of the increased government stake sale and the additional supply of shares in the market.
Retail Investors Can Participate on August 26
The OFS will open for retail investors and eligible employees on Wednesday, August 26.
Under the offer structure:
- 10% of the offer has been reserved for retail investors.
- 25,000 shares have been reserved for eligible employees.
This will provide retail shareholders and eligible employees an opportunity to participate in the government’s stake sale following the strong institutional response on the first day.
Hindustan Copper OFS Part of Government Disinvestment Programme
The Hindustan Copper stake sale is part of the Centre’s broader disinvestment programme, through which the government seeks to raise resources and increase public shareholding in state-owned companies.
According to government-linked disclosures cited in reports, the Centre has raised ₹52,716 crore through PSU disinvestment so far in the current financial year.
For FY27, the Union Budget has set a target of ₹80,000 crore through disinvestment and asset monetisation.
The strong response to the Hindustan Copper OFS highlights continued institutional interest in government stake sales and the Centre’s strategy of using listed public-sector companies to raise resources while increasing their public float.
About Hindustan Copper Limited
Hindustan Copper Limited (HCL) is a Miniratna Category-I Central Public Sector Enterprise under the Ministry of Mines. It is engaged in the exploration, mining and production of copper and copper-related products. HCL is the only vertically integrated copper producer in India with operations spanning mining and processing activities.
Read also: Hindustan Copper Q1 FY27 Results: Revenue Jumps 81% to ₹936.50 Crore, PAT Surges 163%
