Hindustan Copper Shares Fall 6% As Govt Announces 6% Stake Sale Via OFS At 10% Discount

Shares of Hindustan Copper declined sharply in early trade on Tuesday after the government announced an Offer for Sale (OFS) to divest up to a 6% stake in the state-owned company. The floor price for the offer has been fixed at Rs 514 per share.

The stock fell 6.71% to Rs 535.65 on the NSE by 9:34 am, compared with its previous close of Rs 574.15.

Govt To Sell Up To 6% Stake

The Centre will initially offer a 3% stake in Hindustan Copper, while an additional 3% green shoe option will be available if the issue receives excess demand. The announcement was made by the Department of Investment and Public Asset Management (DIPAM).

At Rs 514, the OFS floor price represents a 10.5% discount to Hindustan Copper’s August 24 closing price. Retail investors will receive a 10% reservation in the offer, while eligible employees have been allocated an additional 25,000 shares.

The government has so far raised Rs 52,716 crore through public-sector disinvestment during the current financial year.

Hindustan Copper OFS: Bidding Dates, Settlement

Bidding for the OFS will take place between 9:15 am and 3:30 pm on August 25 and August 26. Non-retail investors will participate on the first day, while retail investors and eligible employees can bid on August 26. Non-retail investors can also carry forward unallocated bids from the first day.

The settlement of bids from both sessions will be completed on August 27 because August 26 is a clearing holiday.

Emkay Global Financial Services, DAM Capital Advisors and IDBI Capital Markets & Securities have been appointed as brokers to the government, with DAM Capital serving as the settlement broker. The NSE will function as the designated stock exchange, while NSE Clearing will handle clearing activities.