Hindustan Copper Stake Sale: Govt Sets ₹514 Floor Price For Up To 6% Stake

The Indian government has announced an Offer for Sale (OFS) in Hindustan Copper, seeking to sell a 3% stake with an option to divest another 3% if the issue is oversubscribed. The floor price has been set at ₹514 per share, according to the Department of Investment and Public Asset Management (DIPAM).

At the floor price, the full 6% stake sale could be worth around ₹3,000 crore, based on calculations cited by Mint. The floor price is about 10.45% below Hindustan Copper’s closing price of ₹574 on the NSE on Monday.

Why The Government Is Selling Hindustan Copper Stake

DIPAM Secretary Arunish Chawla said in a post on X that the government will offer 3% of its equity in Hindustan Copper through the OFS, with a further 3% green-shoe option in case of oversubscription.

10% of the offer has been reserved for retail investors, while another 25,000 shares have been set aside for eligible employees. The stake sale could reduce the government’s holding in the company, depending on the final number of shares sold.

The OFS comes after a sharp rally in Hindustan Copper’s shares. The stock has gained around 17% in August, marking its strongest monthly rise since January, according to the Mint report.

The recent rally has been supported by higher global copper prices and concerns over the availability of the metal. Expectations around possible US import tariffs have also encouraged higher copper shipments to the US, adding to supply concerns.

Hindustan Copper Shareholding And Disinvestment Push

The government held a 66.14% stake in Hindustan Copper at the end of the June quarter, according to BSE shareholding data. Retail shareholders were the second-largest shareholder category, with a combined 23.1% stake.

Individual shareholders with share capital of up to ₹2 lakh collectively held 17.79% of the company. Mutual funds had a relatively small presence, with around 1% ownership.

The Hindustan Copper OFS is the government’s second major stake sale this month, following the LIC OFS earlier in August. The government raised ₹31,552 crore through the LIC stake sale as part of efforts to help the insurer meet minimum public shareholding requirements.

So far in the current financial year, the government has raised ₹52,716 crore through PSU disinvestment, according to the report.