1 week ago
More PSU Stake Sales Signaled After Hindustan Copper OFS
The government wants to raise ₹80,000 crore by selling parts of state-owned companies during FY27.
It says it has already raised about ₹52,000 crore through several sales.
One of these sales involved Hindustan Copper.
Investors showed strong interest, bidding for more than three times the shares initially offered.
Because demand was high, the government offered extra shares through a greenshoe option.
A successful 6% sale would bring the government close to 70% of its yearly goal.
It would still need to raise about ₹24,303 crore before the financial year ends.
Officials say more sales may happen, but they have not said which company could be next.
The government has set an ₹80,000 crore disinvestment target for FY27.
Around ₹52,000 crore has reportedly been mobilised through transactions including LIC and Hindustan Copper stake sales.
The Hindustan Copper OFS received institutional bids equal to 3.41 times the shares offered.
The government exercised the entire greenshoe option, while retail investors and eligible employees could participate afterward.
A successful 6% Hindustan Copper stake sale would leave about ₹24,303 crore to raise during the remaining seven months of FY27.
- Who
- The Government of India, the Department of Investment and Public Asset Management, Hindustan Copper, and investors.
- What
- The government is pursuing more public-sector stake sales after a Hindustan Copper offer for sale and aims to meet its FY27 disinvestment target.
- Where
- The location was not specified; the transaction was conducted through a market offer for sale.
- When
- FY27; retail and eligible employee participation in the Hindustan Copper OFS was scheduled for the day after institutional bidding.
- Why
- To raise funds through disinvestment and support the government’s ₹80,000 crore FY27 target.
Government Confidence
Execution Concerns
Meeting the FY27 target
Government Confidence
DIPAM Secretary Arunish Chawla said the government remains confident it will achieve the ₹80,000 crore target and continue working toward it.
Execution Concerns
The government still needs to raise additional funds, with the exact amount depending on the final Hindustan Copper sale and future transactions.
Future stake sales
Government Confidence
Strong institutional demand for Hindustan Copper and the government’s comments indicate that more market offerings could follow.
Execution Concerns
The government has not disclosed which company may be next, so the timing and scale of future sales remain uncertain.
Purpose of disinvestment
Government Confidence
Additional stake sales could help mobilise funds and advance the FY27 asset-sale goal.
Execution Concerns
Chawla said the government’s focus is not solely on meeting numerical targets, indicating that other considerations also influence the disinvestment programme.
Key facts
- FY27 disinvestment target
- ₹80,000 crore
- Reported amount mobilised
- Around ₹52,000 crore
- Hindustan Copper stake offered
- 6%
- Projected amount remaining
- Approximately ₹24,303 crore
- Institutional demand
- Bids reached 3.41 times the shares offered on the opening day
- Retail reservation
- Up to 10% of the offer
- Employee reservation
- Up to 25,000 shares
- Government holding before OFS
- 66.14% at the end of the June-ended quarter
Quotes
Arunish Chawla
Secretary of the Department of Investment and Public Asset Management
“The government will now sell the additional shares available under the greenshoe option.”
livemint.com
“We are working hard and we will achieve the target, and we will continue to work hard.”
livemint.com
Sources
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