Hindustan Copper OFS gets 3.41x institutional demand; govt to exercise full green-shoe option
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The government will exercise the entire green-shoe option in its Hindustan Copper Ltd (HCL) offer for sale (OFS) after the institutional portion of the issue was oversubscribed 3.41 times on the first day, signalling strong demand for the stake sale.
NSE data showed bids for 8.91 crore shares against the total issue size of 5.22 crore shares, including the green-shoe option, translating into a 1.71-times subscription.
The OFS has a floor price of ₹514 per share, representing a 10.4% discount to Hindustan Copper's Monday closing price of ₹574.15 on the NSE. Shares of Hindustan Copper fell 7.45% on Tuesday to close at ₹531.40 on the NSE.
“Hindustan Copper Ltd. Offer for Sale (OFS) received an enthusiastic response from the institutional investors and was oversubscribed 3.41 times on Day One. The Government has decided to exercise the entire green shoe option,” DIPAM Secretary said in a post on X on Tuesday.
The retail and employee portions of the OFS will open for bidding on Wednesday, August 26.
Government to sell full 6% stake
The Centre had initially offered to sell a 3% stake in Hindustan Copper through the OFS, with an option to sell an additional 3% under the green-shoe mechanism in case of strong demand.
With the full green-shoe option now being exercised, the government will sell up to 6% of its stake in the copper producer. At the floor price, the total sale is estimated to be worth around ₹3,000 crore.
The OFS was launched at a floor price of ₹514 per share, which was at a discount to Hindustan Copper's previous closing price. Ten per cent of the offer has been reserved for retail investors, while 25,000 shares have been earmarked for eligible employees.
The strong institutional response comes despite the stock witnessing selling pressure after the OFS announcement. Hindustan Copper shares fell as much as 7% during Tuesday's trading session as investors adjusted to the additional supply from the government stake sale.
Five-year gap since previous OFS
The latest transaction marks the government's return to the OFS route for Hindustan Copper after a gap of around five years. The previous major OFS was conducted in September 2021, when the government sold a 6.35% stake to non-retail investors.
The government held 66.14% in Hindustan Copper as of March 31, 2026. If the full 6% stake sale is completed, its holding would fall substantially while increasing the company's public float.
Hindustan Copper is India's only vertically integrated copper producer, with operations spanning mining, beneficiation, smelting and refining. The company has gained investor attention amid expectations of sustained copper demand from electrification, renewable energy, power infrastructure and other industrial applications.