Hindustan Copper: Govt plans full 3% green shoe in stake sale
- Government plans to exercise full 3% oversubscription option in Hindustan Copper OFS
- Total equity sale increases to 6% of issued and paid-up capital
- Bidding opens August 25, 2026, with a floor price of ₹514 per share
- Base offer comprises 2,90,10,721 shares for non-retail investors
*this image is generated using AI for illustrative purposes only.
The Ministry of Mines plans to exercise the full 3% oversubscription option in the Hindustan Copper Offer for Sale (OFS). This decision brings the total potential equity sale to 6% of the company’s issued and paid-up capital. The bidding process is scheduled to commence on August 25, 2026, with a floor price of ₹514 per share.
Offer Structure
The promoter, represented by the President of India through the Ministry of Mines, proposes to sell a base offer size of 2,90,10,721 equity shares, representing 3% of the total issued and paid-up equity capital. This initial tranche will be available exclusively to non-Retail Investors on August 25, 2026 (T day).
Upside Option
The government retains an oversubscription option to sell an additional 2,90,10,721 shares (3% stake) if demand warrants it. The decision to exercise this option will be intimated to the stock exchanges after trading hours on T day. With the plan to use the full green shoe, the total shares offered will reach 5,80,21,442.
Bidding Timeline
The offer will be conducted over two trading days via a separate window on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE):
- August 25, 2026 (T day): Open for non-Retail Investors only.
- August 26, 2026 (T+1 day): Open for Retail Investors, Employees, and non-Retail Investors carrying forward un-allotted bids.
Settlement for all bids received on both days will take place on August 27, 2026, due to a clearing holiday on August 26.
Allocation and Pricing
Allocation will follow a price priority basis at multiple clearing prices. Key structural details include:
- Floor Price: ₹514 per equity share.
- Retail Reservation: Minimum 10% of offer shares reserved for Retail Investors.
- Employee Offer: 25,000 shares reserved for eligible employees, with a bid limit of ₹500,000 per employee.
- Institutional Reservation: Minimum 25% of offer shares reserved for Mutual Funds and Insurance Companies.
Retail Investors may bid at any price above the floor price or at the cut-off price. There is no retail discount applicable to this offer.
What the Numbers Show
The confirmation that the government plans to utilize the full 3% green shoe option signals confidence in market demand for Hindustan Copper’s equity. By moving from a tentative 3% base offer to a definitive 6% total sale, the divestment structure shifts from a test-of-appetite approach to a substantial stake reduction. The ₹514 floor price serves as the critical valuation anchor for this larger transaction volume.
Historical Stock Returns for Hindustan Copper
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.43% | -0.77% | -2.23% | -6.28% | +110.05% | 0.0% |
How might the increased 6% stake sale impact Hindustan Copper's share price volatility post-settlement compared to the initial 3% base offer?
What does the ₹514 floor price imply about the Ministry of Mines' valuation expectations for copper prices in the latter half of 2026?
Could this substantial divestment signal a broader shift in the government's strategy toward privatizing or reducing stakes in other public sector undertakings?
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