Government’s Hindustan Copper stake sale receives strong institutional response, with bids worth nearly ₹4,580 crore on the first day.
New Delhi: The Government of India’s Offer for Sale (OFS) in Hindustan Copper Limited (HCL) received a strong response from institutional investors on Tuesday, with the issue subscribed 3.41 times on the opening day.
Investors in the non-retail category placed bids for 8.91 crore shares against the 2.61 crore shares initially offered, according to stock exchange data. At the OFS floor price of ₹514 per share, the bids were worth approximately ₹4,580 crore.
Government Exercises Full Green-Shoe Option
The Centre had initially offered a 3% stake in Hindustan Copper, along with an option to sell an additional 3% through the green-shoe mechanism if demand was strong.
Following the heavy oversubscription, the government has decided to exercise the entire green-shoe option, taking the total stake on offer to up to 6%.
DIPAM Secretary Arunish Chawla confirmed the decision, stating that the government would exercise the full green-shoe option.
OFS Floor Price at ₹514
The OFS floor price has been fixed at ₹514 per share.
The price represented a 10.38% discount to Hindustan Copper’s closing price on the BSE on Monday.
However, the company’s stock came under pressure following the stake-sale announcement. On Tuesday, Hindustan Copper shares declined 7.04%, closing at ₹533.20 on the BSE.
If the entire 6% stake is sold at the floor price, the government would offer approximately 5.22 crore shares, with a notional value of around ₹2,683 crore. The actual amount raised will depend on the final allocation price.
Retail Investors Can Participate on Wednesday
The OFS will open for retail investors and eligible employees on Wednesday, August 26, 2026.
Under the offer:
- 10% of the offer has been reserved for retail investors.
- 25,000 shares have been reserved for eligible employees.
- Retail investors can participate at the specified OFS price and conditions.
Part of Government’s Disinvestment Programme
The Hindustan Copper stake sale forms part of the Centre’s broader disinvestment and asset monetisation programme.
According to government-linked disclosures cited in reports, the government has raised approximately ₹52,716 crore through PSU disinvestment so far in the current financial year.
For FY2026-27, the Union Budget has set a target of ₹80,000 crore through disinvestment and asset monetisation.
Strong Institutional Demand
The strong response from institutional investors highlights continued demand for government stake-sale opportunities in listed public-sector companies.
The transaction will also increase the public shareholding in Hindustan Copper while allowing the government to mobilise resources through its disinvestment programme.
Key figures at a glance:
| Particular | Details |
|---|---|
| OFS Base Size | 3% |
| Green-Shoe Option | Additional 3% |
| Total Potential Stake Sale | 6% |
| OFS Floor Price | ₹514/share |
| Non-Retail Subscription | 3.41 times |
| Shares Offered Initially | 2.61 crore |
| Shares Bid | 8.91 crore |
| Value of Bids | ~₹4,580 crore |
| Retail Bidding | August 26, 2026 |
| Retail Reservation | 10% |
| Employee Reservation | 25,000 shares |
Source: Stock exchange data, Department of Investment and Public Asset Management (DIPAM), and government-linked disclosures.
