The Indian government has announced its second offer for sale (OFS) this month, this time in Hindustan Copper, the state-run company engaged in copper ore mining and production. The government is looking to sell up to a 6% stake in the company through the OFS at a floor price of ₹514 per share.
The floor price represents a 10.45% discount to Hindustan Copper’s closing price of ₹574 on the NSE on Monday. The OFS announcement comes at a time when the stock has staged a strong recovery in August, surging 17% and marking its biggest monthly gain since January.
In a post on X, Department of Investment and Public Asset Management (DIPAM) secretary Arunish Chawla said the Government of India offers to divest 3 per cent equity in Hindustan Copper Limited (HCL) through an Offer for Sale (OFS) with an option to divest an additional 3 per cent (green shoe) in case of oversubscription.
The sharp rally has been driven by a spike in global copper prices amid concerns over the availability of the metal. The supply concerns were fuelled partly by a surge in copper shipments to the US in anticipation of a potential decision on import tariffs.
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