Hindustan Copper Shares Rise 5.6% as Government OFS Opens for Retail Investors

Shares of Hindustan Copper surged 5.6 per cent on Wednesday as the government's Offer for Sale (OFS) opened for retail investors. The development followed a strong response from institutional investors during the first day of bidding.

By afternoon trading at 3:07 pm, the stock was trading at ₹554.55 on the National Stock Exchange (NSE). Earlier in the session, the share price rose to ₹562.60, recovering from its previous close of ₹532.65.

The government initially announced the sale of a 3 per cent equity stake in Hindustan Copper through the OFS mechanism. The offering included a green shoe option to sell an additional 3 per cent stake in the event of strong market demand. With the full green shoe option being exercised, the total potential stake sale reaches 6 per cent.

The OFS has been set with a floor price of ₹514 per share. As part of the allocation structure, 10 per cent of the total offer is specifically reserved for retail investors. Additionally, 25,000 shares have been set aside for eligible employees of the company.

"Government divestments through the Offer for Sale route provide a structured mechanism to dilute equity while gauging market sentiment. The strong institutional response followed by retail participation highlights steady investor interest in public sector undertakings. When green shoe options are fully exercised, it reflects confidence in the underlying demand, though retail investors must always evaluate floor prices against broader market fundamentals before making investment decisions." — Dr. Shishir Gupta, Founder & CEO, StartupLanes