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India to sell up to 6% of Hindustan Copper via OFS at ₹514
The floor price implies a 10.5% discount to the stock's ₹574 close and values the proposed stake sale at about ₹3,000 crore.
India’s government has announced a second offer for sale this month, planning to divest up to a 6% stake in state-run copper producer Hindustan Copper through an OFS at a floor price of ₹514 per share, which is 10.45% below the stock’s ₹574 closing price on the NSE.
According to LiveMint Markets calculations, the proposed stake sale is valued at around ₹3,000 crore. DIPAM secretary Arunish Chawla said the sale would start with a 3% equity divestment, with an option to sell an additional 3% via a green shoe if the offer is oversubscribed, and that 10% of the offer is reserved for retail investors, with 25,000 shares set aside for eligible employees.
The announcement comes as Hindustan Copper shares have rebounded in August, rising 17% and posting their biggest monthly gain since January. LiveMint Markets links the rally to a jump in global copper prices alongside concerns about copper availability.
The supply worries have been partly tied to a surge in copper shipments to the US ahead of a potential decision on import tariffs. LiveMint Markets also said the government had raised ₹31,552 crore through an OFS in LIC earlier this month, and has collected ₹52,716 crore from PSU disinvestment so far in the current fiscal.
Latest closeCopper $6.751 ▲1.1%