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Govt Sells 6% Stake in Hindustan Copper at Discount

By Business DeskGovt Sells 6% Stake in Hindustan Copper at Discount

Indian govt to divest up to 6% in Hindustan Copper Ltd (HCL) via OFS. Floor price set at Rs 514/share, a 10.38% discount. Retail investors get 10% reservation.

The Indian government has announced plans to divest up to a 6% stake in Hindustan Copper Ltd (HCL) through an Offer for Sale (OFS), setting the floor price at Rs 514 per share. This valuation represents a significant 10.38% discount against HCL’s closing price on the BSE from the preceding Monday.

The Department of Investment and Public Asset Management (DIPAM) secretary, Arunish Chawla, confirmed the initial offer will target a 3% equity sale. An additional 3% is available through a green shoe option, activated only if the primary offer receives sufficient oversubscription.

OFS Key Figures

  • Maximum Stake Sale: 6%
  • Floor Price: Rs 514 per share
  • Discount to Monday’s Close: 10.38%
  • Initial Equity Offered: 3%
  • Retail Investor Reservation: 10% of the offer
  • Employee Reservation: 25,000 shares

To ensure broad participation, the government has reserved 10% of the total offer specifically for retail investors. Furthermore, a block of 25,000 shares has been earmarked for eligible employees of Hindustan Copper Ltd, providing a distinct allocation within the divestment.

This strategic divestment by the Indian government aims to reduce its holding in the state-owned copper producer. The move underscores ongoing efforts to monetize public sector assets and manage the government’s investment portfolio.

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