Hindustan Copper: Govt Sells 6% Stake for Rs 2,982 Cr
By Business Desk
Indian govt to offload 6% stake in Hindustan Copper via OFS, aiming to raise Rs 2,982 crore at a Rs 514 floor price, a 10% discount.
The Indian government has announced plans to divest up to a 6% stake in Hindustan Copper Ltd. through an Offer for Sale (OFS). This strategic equity sale is projected to raise approximately Rs 2,982 crore for the government coffers.
The offering structure includes an initial 3% equity divestment. Furthermore, an additional 3% is available should the offer experience oversubscription from investors.
Key OFS Details
- Total Stake Offered: Up to 6%
- Targeted Revenue: Approximately Rs 2,982 crore
- Initial Equity Sale: 3%
- Oversubscription Option: Additional 3%
- Floor Price per Share: Rs 514
- Discount to Previous Close: 10%
- Government’s Fiscal Year Revenue from Sales: Rs 52,716 crore
The floor price for the shares has been set at Rs 514 each. This represents a significant 10% discount when compared to Hindustan Copper’s closing share price on the previous Monday, a pricing strategy aimed at attracting robust investor interest.
This divestment initiative forms an integral part of the Indian government’s broader efforts to increase revenue in the current fiscal year. The government has already successfully accumulated Rs 52,716 crore during this period through similar stake sales in various other public sector undertakings.
The structured OFS, with its initial and oversubscription components, highlights the government’s consistent strategy in managing its public sector holdings. Such calculated divestments are crucial for meeting the administration’s annual financial targets and reallocating resources.