1 week ago
Hindustan Copper OFS Opens Retail Bidding After Strong Demand
The Government of India is selling some of its Hindustan Copper shares.
Retail investors could place bids on August 26, after other investors showed strong demand.
The minimum bid price was ₹514 per share.
This price was below the company’s market price at the times mentioned in the reports.
However, the lower floor price did not guarantee that investors would receive shares or make a profit.
The government could sell up to 6% of the company because it used an additional sale option.
Some analysts expect copper demand and company expansion to support the stock over time.
Other analysts and reports warned that the shares are expensive and could move up or down after the sale.
The Government of India opened retail bidding on August 26 for up to 6% of Hindustan Copper after strong non-retail demand.
The OFS floor price is ₹514 per share, about 6.3% below ₹548.70 and 10.5% below the August 24 close of ₹574.15.
The non-retail portion was subscribed 3.41 times, prompting the government to exercise the full 3% greenshoe option.
At least 10% of the offer, or about 58.02 lakh shares, is reserved for retail investors, while 25,000 shares are reserved for eligible employees.
Analysts cited strong copper demand and expansion prospects but warned that Hindustan Copper’s valuations are high and the stock could remain volatile after the OFS.
- Who
- The Government of India is selling Hindustan Copper shares, with retail, non-retail and eligible employee investors able to participate.
- What
- An offer for sale of up to 6% of Hindustan Copper opened for retail investors at a ₹514 floor price.
- Where
- Investors could bid through dedicated OFS windows on the NSE and BSE or through their broker’s demat-account platform.
- When
- Retail bidding opened on August 26, 2026, following non-retail bidding on August 25; settlement was scheduled for August 27.
- Why
- The sale is part of the Centre’s broader public-sector disinvestment programme, and the proceeds go to the government rather than Hindustan Copper.
Reasons to Consider Bidding
Risks and Reasons for Caution
Long-term growth
Reasons to Consider Bidding
Mirae Asset Sharekhan said robust earnings, a near-term debt-free balance sheet and capacity expansion could support long-term growth. It also cited copper demand from data centres, power grids and transformers.
Risks and Reasons for Caution
The reports warned that short-lived corrections could occur after the OFS and that the stock may remain volatile while retail bidding and settlement take place.
Valuation
Reasons to Consider Bidding
Anand Rathi maintained a buy recommendation and a ₹715 target, citing operational visibility and supportive copper-market conditions.
Risks and Reasons for Caution
Mirae Asset Sharekhan said the stock was expensive, trading at about 30 times trailing EV/EBITDA and 42 times trailing P/E.
Headline discount
Reasons to Consider Bidding
The ₹514 floor price was about 6.3% below the cited ₹548.70 market price and about 10.5% below the August 24 close of ₹574.15.
Risks and Reasons for Caution
The floor price only sets the minimum bid level; it does not guarantee allotment, an effective discount or that the stock will remain above ₹514 after the OFS.
Key facts
- Floor price
- ₹514 per share
- Offer size
- Up to 6% of Hindustan Copper, or about 5.80 crore shares
- Retail reservation
- At least 10% of the offer, or approximately 58.02 lakh shares
- Employee reservation
- 25,000 shares for eligible employees
- Non-retail subscription
- 3.41 times, with bids for about 8.91 crore shares against 2.61 crore shares offered
- Government holding
- Approximately 66.14% of Hindustan Copper
- Analyst target
- Anand Rathi maintained a buy rating with a target price of ₹715
- Potential proceeds
- About ₹2,982 crore if the full 6% stake is sold
Quotes
Netra Deshpande
Research Analyst at Mirae Asset Sharekhan
“In the long run, the stock price will go upwards owing to strong demand for copper from data centres, power grids and transformers. Thus, one should subscribe to this OFS on a long-term basis, although we may see some short-lived corrections post-OFS”
businesstoday.in
Sources
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