Govt Sells 6% in Hindustan Copper via OFS, Floor Price Rs 514

The Indian government has announced an Offer for Sale (OFS) to divest up to a 6% stake in Hindustan Copper Ltd. The sale is scheduled to run for two days, commencing on August 25, 2026, with a floor price set at Rs 514 per share.

Initially, the government will offer over 2.90 crore shares, representing 3% of the company’s equity capital. An additional 3% will be available for sale if the base offer is oversubscribed, potentially bringing the total divestment to 6%.

OFS Key Metrics

• Total stake on offer: Up to 6% of equity capital
• Initial offer: Over 2.90 crore shares (3%)
• Floor price: Rs 514 per share

The bidding process is structured across two days to accommodate different investor categories. Non-retail investors will place their bids on August 25, while retail investors and eligible employees will participate on August 26.

Non-retail bidders who do not receive share allotments on the first day have the option to carry forward their bids. Due to a clearing holiday on August 26, the settlement for all successful bids will occur on August 27.

Bidding Schedule and Settlement

• Non-retail bidding: August 25, 2026
• Retail & employee bidding: August 26, 2026
• Settlement date: August 27, 2026

Specific allocations are reserved for various investor segments to ensure broad participation. At least 10% of the offer shares are earmarked for retail investors, defined as individuals bidding up to Rs 2 lakh.

Furthermore, a minimum of 25% of the offer is reserved for mutual funds and insurance companies, provided their bids meet or exceed the floor price. No single bidder outside these reserved categories can be allotted more than 25% of the total offer.

Investor Allocation Breakdown

• Retail Investors: At least 10% (bids up to Rs 2 lakh)
• Mutual Funds & Insurance Companies: Minimum 25%
• Eligible Employees: 25,000 equity shares reserved (bids up to Rs 5 lakh, allotment capped at Rs 2 lakh if not undersubscribed)

Employees must bid at Tuesday’s cut-off price, and no discount is being extended to either retail investors or employees. Non-retail allocations will follow a price-priority system with multiple clearing prices.

Retail bidders retain the flexibility to specify a price above the floor price or opt to bid at the cut-off price. The facilitating brokers for this divestment include DAM Capital Advisors, Emkay Global Financial Services, and IDBI Capital Markets & Securities, with DAM Capital also serving as the settlement broker.

The National Stock Exchange (NSE) is designated as the primary exchange for the offer, with NSE Clearing handling all clearing corporation duties. The government maintains the right to withdraw the offer before it opens or cancel it after the first day of bidding if non-retail demand proves insufficient.