1 week ago
Government Offers Up to 6% Hindustan Copper Stake
The Indian government owns most of Hindustan Copper Limited.
It wants to sell some of its shares through a process called an offer for sale, or OFS.
It will first offer 3% of the company and may sell another 3% if there are many buyers.
Each share will have a minimum price of ₹514.
This price is about 10% lower than the company’s recent market price.
Selling the full 6% could raise about ₹3,000 crore for the government.
Some shares are set aside for small investors and employees.
Different types of investors will bid on different days.
The government can withdraw or cancel the offer if demand is not strong enough.
The Government of India will sell an initial 3% stake in Hindustan Copper through a two-day OFS, with an additional 3% option if oversubscribed.
The floor price is ₹514 per share, roughly 10% below Hindustan Copper’s Monday closing price of ₹573.55 on the BSE and ₹574 on the NSE.
The full 6% sale is expected to raise approximately ₹2,982-3,000 crore.
At least 10% of the offer is reserved for retail investors, while 25,000 shares are reserved for eligible employees.
Non-retail bidding is scheduled for August 25, 2026, followed by retail and employee bidding on August 26; settlement is planned for August 27.
- Who
- The Government of India, through the President of India acting via the Ministry of Mines, is selling shares in Hindustan Copper Limited.
- What
- A two-day Offer for Sale will divest 3% of Hindustan Copper, with an option to sell an additional 3% if the base offer is oversubscribed.
- Where
- The OFS will be conducted through the NSE. Hindustan Copper operates facilities in Madhya Pradesh, Rajasthan, Jharkhand, Gujarat and Maharashtra.
- When
- The announcement was made on August 24, 2026; bidding is scheduled for August 25 and 26, with settlement on August 27.
- Why
- The sale is part of the government’s public-sector disinvestment programme and is expected to raise about ₹3,000 crore if the full 6% is sold.
Key facts
- Initial stake offered
- 3% of Hindustan Copper’s issued and paid-up equity capital, representing more than 2.90 crore shares
- Additional option
- A further 3% may be sold if the base offer is oversubscribed, taking the total to 6%
- Floor price
- ₹514 per share
- Estimated proceeds
- Approximately ₹2,982-3,000 crore if the full 6% is sold
- Government ownership
- The Government of India held 66.14%; a full sale would reduce this to 60.14%
- Investor reservations
- At least 10% for retail investors, at least 25% for mutual funds and insurance companies, and 25,000 shares for eligible employees
- Bidding and settlement
- Non-retail bidding on August 25, retail and employee bidding on August 26, and settlement on August 27
- Offer conditions
- The government may withdraw the offer before opening or cancel it after the first day if qualifying non-retail demand is insufficient
Quotes
Arunish Chawla
Secretary in the Department of Investment and Public Asset Management
“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”
thehindubusinessline.com
financialexpress.com
Sources
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