The Government of India has announced plans to offload up to 6 percent of its equity stake in Hindustan Copper Limited (HCL) through an Offer for Sale (OFS). The stake sale is anticipated to fetch around Rs 3,000 crore.
Arunish Chawla, Secretary in the Department of Investment and Public Asset Management (DIPAM), shared the details in a social media post. According to the announcement, the government is initially offering a 3 percent equity stake, with an additional 3 percent reserved as a green shoe option in the event of an oversubscription.
The floor price for the offering has been fixed at Rs 514 per share. This represents a discount of nearly 10 percent compared to HCL's closing share price of Rs 573.55 on Monday, which recorded a gain of 0.17 percent over Friday's close.
The terms of the offering allocate 10 percent of the shares to retail investors, while an additional 25,000 shares are reserved for eligible employees of the company. Prior to this divestment, the Government of India held a 66.14 percent equity stake in Hindustan Copper Limited.
Hindustan Copper Limited is a Schedule 'A' Mini-Ratna, Category-I Central Public Sector Enterprise operating under the administrative control of the Ministry of Mines. Incorporated in 1967, it remains the sole company in India engaged in copper ore mining and holds all operating mining leases for copper ore in the country.
The company's operations include copper mines located at Malanjkhand in Madhya Pradesh, Khetri in Rajasthan, and Ghatsila in Jharkhand. Additionally, HCL operates a primary smelter and refinery at Ghatsila, secondary smelter and refining facilities at Jhagadia in Gujarat, and a Continuous Cast Copper Wire Rod plant at Taloja in Maharashtra.
For the financial year 2025-26, Hindustan Copper Limited reported a Profit Before Tax of Rs 1,232.73 crore against a net sales turnover of Rs 3,054.4 crore.
"The government's decision to divest up to a 6 percent stake in Hindustan Copper Limited via an Offer for Sale at a competitive floor price is a strategic move to manage public asset holdings. Offering a discount to the market price alongside specific reservations for retail investors and employees helps ensure broader market participation. With solid fundamentals, including a strong Profit Before Tax for the 2025-26 financial year, such public sector disinvestments continue to be an effective mechanism for capital generation and market liquidity." — Dr. Shishir Gupta, Founder & CEO, StartupLanes
