1 week ago
Government expands Hindustan Copper stake sale after strong demand
The Indian government is selling part of its ownership in Hindustan Copper.
Big investors wanted more shares than were initially available.
Because of this strong demand, the government decided to sell extra shares through a greenshoe option.
The total sale could reach 6% of the company.
The shares are being offered at a discounted price of ₹514 each.
The sale could bring the government about ₹2,982 crore.
Retail investors and eligible employees can also apply for shares.
The sale is part of the government’s plan to raise money by selling small portions of state-owned companies.
Institutional investors bid for 3.41 times the Hindustan Copper shares offered on the OFS’s opening day.
The government exercised the full greenshoe option, potentially increasing the sale from 3% to 6%.
The floor price was set at ₹514 per share, more than 10% below the previous closing price.
A full 6% sale could raise about ₹2,982 crore and reduce the government’s holding to 60.14%.
Retail investors and eligible employees can participate on Wednesday, with 10% reserved for retail investors.
- Who
- The Government of India, institutional investors, retail investors and eligible Hindustan Copper employees.
- What
- The government expanded an offer for sale of Hindustan Copper shares from a possible 3% stake sale to 6% by exercising the full greenshoe option.
- Where
- The offer concerns Hindustan Copper Ltd, with the company’s stock traded on the BSE; the government announcement was made from New Delhi.
- When
- The institutional offer opened on Monday and received bids on Tuesday; retail investors and eligible employees can participate on Wednesday during FY27, or 2026-27.
- Why
- The sale is part of the government’s minority-stake disinvestment programme and supports its FY27 asset-sale target of ₹80,000 crore.
Key facts
- Initial offer
- 3% of Hindustan Copper, equivalent to 2.90 crore shares.
- Maximum offer
- 6% after the government exercised the full greenshoe option.
- Floor price
- ₹514 per share.
- Potential proceeds
- About ₹2,982 crore if the full 6% stake is sold at the floor price.
- Government holding
- The holding could fall from 66.14% to 60.14%.
- FY27 disinvestment target
- ₹80,000 crore, of which ₹52,716.02 crore had been received so far.
- Investor reservations
- Up to 10% of the offer is reserved for retail investors, and up to 25,000 shares are earmarked for eligible employees.
Quotes
Arunish Chawla
Secretary of the Department of Investment and Public Asset Management
“The government will now sell the additional shares available under the green-shoe option.”
livemint.com
Sources
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