Shares of Hindustan Copper are likely to remain in focus on Wednesday, 26 August, as the retail leg of the government’s Offer for Sale (OFS) opens for bidding.
The retail offering follows a strong response from non-retail investors on Tuesday, with the issue receiving more than three times the subscription. Encouraged by the demand, the government has decided to exercise the entire greenshoe option, increasing the potential stake sale to 6% from the initial base offer of 3%.
Under the OFS, the government initially offered to sell a 3% stake in Hindustan Copper, with an option to offload an additional 3% in the event of oversubscription. At the floor price of ₹514 per share, the total potential OFS size could amount to nearly ₹2,982 crore.
The non-retail portion was fully subscribed, paving the way for the government to exercise the additional 3% greenshoe option. The issue will now be open to retail investors, who can submit bids between 9:15 am and 3:30 pm through the separate OFS window available on the BSE and NSE.
At least 10% of the OFS size has been reserved for retail investors, while an additional 25,000 shares have been set aside for eligible employees.
The floor price of ₹514 represents a discount to Hindustan Copper’s recent market price, making the offer closely watched by investors as the government moves ahead with the second and final day of the stake sale.
Hindustan Copper OFS subscribed 3.41x on Day 1
The government’s Hindustan Copper OFS saw strong institutional participation on the first day of bidding on Tuesday, with the offer subscribed 3.41 times.
Following the overwhelming response, the government has decided to exercise the full greenshoe option, the Secretary of the Department of Investment and Public Asset Management (DIPAM) said in a social media post.
The decision will double the size of the stake sale from the initial 3% base offer to 6%, with the additional 3% stake being sold through the greenshoe option.
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