Hindustan Copper shares fell 7% after the government opened a 3% OFS.
OFS floor price is ₹514, around 10% below the previous close.
Government can raise stake sale to 6% under the green shoe option.
Hindustan Copper Shares Fall 7% As Government Opens Up To 6% OFS
Government sets ₹514 floor price for Hindustan Copper OFS, with option to raise stake sale to 6%
Hindustan Copper Shares Fall 7% As Government Opens Up To 6% OFS
Summary
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Shares of Hindustan Copper declined sharply on Tuesday after the Union government opened an offer for sale (OFS) to divest a 3% stake in the state-run copper producer.
The stock fell as much as 6% to ₹540 on the BSE. On the NSE, Hindustan Copper shares were trading at ₹535, down ₹39.15 or 6.82% as of 10:55 am.
The government has retained an option to sell an additional 3% in case of oversubscription, which could take the total stake sale to 6%.
Government Sets OFS Floor Price
The OFS has a floor price of ₹514 per share, representing a discount of around 10% to Hindustan Copper's previous closing price of ₹573.55.
The offer opened for non-retail investors on Tuesday, August 25, with bidding scheduled from 9:15 am to 3:30 pm. Retail investors will get an opportunity to participate on Wednesday, August 26.
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Under the base offer, the government will sell 3% equity in Hindustan Copper. If the issue is oversubscribed, the green shoe option will allow it to sell another 3%.
The OFS has a 10% reservation for retail investors, while 25,000 shares have been set aside for eligible employees.
The sale is part of the government's disinvestment programme and is aimed at increasing public shareholding in Hindustan Copper.
Hindustan Copper Expansion Plans
Hindustan Copper operates under the Ministry of Mines and is India's only vertically integrated copper producer.
The company is targeting ore production capacity of 12.2 million tonnes per annum by 2030. It is also working on the reopening of closed mines in Jharkhand, acquisition of new mines in Chhattisgarh and Madhya Pradesh, and mine exploration in Chile.
Hindustan Copper has also stepped up monitoring of its mine expansion projects.
Strong Q1 Performance
Hindustan Copper reported profit before tax of ₹472 crore for the quarter ended June 2026, an increase of around 163% from the same period a year earlier.
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Profit after tax also rose around 163% to ₹353 crore, while revenue from operations increased 81% to ₹936 crore from ₹516 crore in the year-ago period.
The OFS comes despite the company's strong quarterly performance, with investors now assessing the impact of the government's stake sale and the discount offered through the floor price.
Regular-bid allocations are expected to be confirmed through contract notes around 7 pm on August 25, while settlement and credit of shares for successful bids are expected on or around August 27.