The government's Offer for Sale (OFS) in Hindustan Copper Ltd closed on Wednesday after receiving strong demand from retail as well as institutional investors, prompting the Centre to exercise the entire greenshoe option. The Department of Investment and Public Asset Management (DIPAM) said the OFS was oversubscribed on both days of the offer. The institutional portion had been subscribed 3.41 times on the opening day on Tuesday, following which the government decided to exercise the full greenshoe option. The government had initially offered to sell a 3 per cent stake in the state-owned copper producer, with an option to divest an additional 3 per cent in case of sufficient demand. Exercising the entire greenshoe option allows the Centre to sell up to 6 per cent of the company's equity.
Strong institutional demand
Non-retail investors placed bids for about 8.91 crore shares against 2.61 crore shares offered on Tuesday, translating into subscription of 3.41 times. The strong institutional response paved the way for the government to exercise the additional stake-sale option.
Retail investors and eligible employees were allowed to participate on Wednesday. Ten per cent of the offer was reserved for retail investors, while 25,000 shares were earmarked for eligible employees.
The OFS carried a floor price of Rs 514 per share. At the maximum 6 per cent stake sale and the floor price, the government could realise about Rs 2,982 crore.
The transaction forms part of the Centre's broader disinvestment programme involving minority stake sales in public sector enterprises without transferring management control.
Government stake set to fall
Before the OFS, the government held a 66.14 per cent stake in Hindustan Copper. A full 6 per cent divestment would reduce its holding to about 60.14 per cent.
Hindustan Copper, a central public sector enterprise under the Ministry of Mines, is engaged in activities ranging from exploration and mining of copper ore to beneficiation, smelting and refining.
The OFS also triggered volatility in the company's shares. Hindustan Copper had fallen more than 7 per cent on Tuesday as the stake sale opened, closing at Rs 531.40 on the NSE. The stock recovered on Wednesday and ended at Rs 554.90, according to the latest available market data.
The successful completion of the offer adds to the government's disinvestment receipts for 2026-27, with the Centre pursuing minority stake sales in state-owned companies as part of its asset monetisation strategy.