Hindustan Copper Shares Drop 7.45% as Govt Sells 6% Stake via OFS
NEWZA Editorial Team••Source: MoneyControl
NEWZAFinancial Intelligence Feed
⚡ Key Financial Takeaways
Govt offers 3% initial stake, 3% green‑shoe option, floor price Rs 514 (10.5% discount to August 24 close).
Shares fell 7.45% to Rs 531.40 after announcement; settled at Rs 574.15 on Monday.
OFS fully subscribed by non‑retail investors; 10% reserved for retail, 25,000 shares for employees; settlement on Aug 27.
Government OFS Announcement The Ministry of Finance announced that the government will divest a total of 6% equity in Hindustan Copper Limited (HCL) through an Offer for Sale (OFS). The initial tranche is 3%, with an additional 3% green‑shoe option available if the offer is oversubscribed. The floor price for the OFS is set at Rs 514 per share, representing a 10.5% discount to the August 24 closing price.
Market Reaction & Offer Details Following the announcement, Hindustan Copper shares fell 7.45% to Rs 531.40 on Tuesday, closing down Rs 42.75. The non‑retail portion of the OFS was fully subscribed, while 10% of the shares are reserved for retail investors and an extra 25,000 shares are set aside for eligible employees. The government has already raised Rs 52,716 crore in the current fiscal year through PSU disinvestments.
Bidding Process & Settlement Bidding will run from 9.15 am to 3.30 pm on both August 25 and 26, with non‑retail investors bidding on the 25th and retail/employee bids on the 26th. Settlement of all bids will occur on August 27, following a clearing holiday on August 26. The NSE is the designated exchange, while NSE Clearing handles the clearing process, and DAM Capital serves as the settlement broker.
