Hindustan Copper has been penalized ₹14,43,140 each by the Bombay Stock Exchange and the National Stock Exchange for non-compliance with corporate governance requirements. The penalties were imposed on August 25, 2026, citing violations related to board composition and committee constitution under SEBI (LODR) Regulations, 2015.

The company disclosed the fines in a filing dated August 26, 2026, stating that the violations pertained to Regulations 17(1), 17(2A), 18(1), 19(1)/(2), 20(2)/(2A), and 21(2). Hindustan Copper attributed the non-compliance to delays in appointing directors, noting that the power of appointment rests with the President of India acting through the Ministry of Mines.

Penalty Breakdown

The total fine payable to each exchange includes an 18% GST component on the basic fine amount. The breakdown of penalties levied by the exchanges is detailed below.

Regulatory Implications

Both exchanges mandated payment within 15 days of the notice date. Failure to comply could result in the freezing of promoter shareholding or suspension of trading if this constitutes a second consecutive quarter of non-compliance for specific regulations.

What the Numbers Show

The penalty structure reveals that the majority of the financial exposure stems from committee constitution lapses rather than board meeting quorum issues. While the board composition violation carries the highest daily penalty rate (₹5,000 per day), the cumulative effect of four distinct committee constitution violations—each attracting ₹2,000 per day for 91 days—accounts for approximately 60% of the total basic fine. This highlights a systemic delay in fulfilling multiple statutory requirements simultaneously rather than an isolated governance failure.

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.