Government Launches Hindustan Copper OFS; To Sell Up To 6% Stake
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The government has launched an OFS in Hindustan Copper to sell a 3% stake, with an option to offload another 3% if the issue is oversubscribed. The floor price is set at ₹514 per share.
The Indian government has started the process of selling a part of its holding in Hindustan Copper through an offer for sale (OFS). The government plans to sell a 3% stake in the state-run copper producer, with an option to sell another 3% if the issue receives strong demand.
The floor price for the OFS has been fixed at ₹514 per share, representing a 10.45% discount to Hindustan Copper's closing price of ₹574 on the National Stock Exchange (NSE) on Monday. At the floor price, the full 6% stake sale could fetch the government around ₹3,000 crore.
Hindustan Copper OFS Details
Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said the government will initially offer a 3% stake in Hindustan Copper. An additional 3% stake, known as the greenshoe option, can be sold if the issue is oversubscribed.
The government has kept 10% of the offer reserved for retail investors. Another 25,000 shares have been set aside for eligible employees.
The OFS comes after a strong run in Hindustan Copper shares. The stock has gained 17% so far in August, putting it on course for its best monthly performance since January.
The recent rise has come amid higher global copper prices. Concerns over the availability of copper have supported prices, with shipments to the US also increasing ahead of a possible decision on import tariffs.
Government's PSU Disinvestment Drive
The Hindustan Copper OFS is the government's second major share sale this month. Earlier in August, the government raised ₹31,552 crore through an OFS in Life Insurance Corporation of India (LIC). The LIC stake sale was aimed at helping the insurer meet the minimum public shareholding requirement for listed companies.
So far in the current financial year, the government has collected ₹52,716 crore through PSU disinvestment.
Government Holds 66.14% In Hindustan Copper
The Indian government remained the largest shareholder in Hindustan Copper at the end of the June quarter, with a 66.14% stake, according to Bombay Stock Exchange (BSE) shareholding data. The proposed OFS will bring down the government's holding if the full stake on offer is sold.
Retail investors are the second-largest shareholder group in the company, holding a combined 23.1% stake. Mutual funds, on the other hand, held around 1% of Hindustan Copper.
Individual shareholders with share capital of up to ₹2 lakh collectively owned 17.79% of the company at the end of June. The figures point to a sizeable retail investor base in Hindustan Copper.
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
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