Government signals more PSU stake sales after Hindustan Copper OFS: Report

The government's disinvestment drive is likely to remain active in the coming months, following a series of stake sales in state-owned companies, including the recent offer for sale (OFS) in Hindustan Copper.

The Centre has set a disinvestment target of ₹80,000 crore for FY27 and has already mobilised around ₹52,000 crore through various transactions, including the LIC OFS and the latest stake sale in Hindustan Copper, according to an NDTV Profit report.

DIPAM Secretary Arunish Chawla told NDTV Profit that the government remains confident of achieving its FY27 target, while adding that the focus is not solely on meeting numerical targets.

“We are working hard and we will achieve the target, and we will continue to work hard,” Chawla told NDTV Profit.

While the government has not disclosed which company could be next in line for a stake sale, Chawla indicated that more market offerings could follow.

On 10 August, Mint reported that the Centre had already raised nearly three-fourths of its ₹80,000-crore asset-sale target for FY27, putting it on a stronger footing to meet a goal that it has repeatedly missed in recent years.

Earlier this year, the Centre also outlined an ambitious roadmap under Asset Monetisation Pipeline 2.0, which envisages monetisation opportunities across highways, railways, power, ports, mining and other infrastructure sectors over the next five years.

Hindustan Copper OFS sees strong institutional demand

The OFS of Hindustan Copper received strong demand from institutional investors on the opening day, with bids reaching 3.41 times the shares on offer, prompting the Centre to exercise the entire greenshoe option to meet excess demand.

Taking to social media platform X on Tuesday, Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said that the OFS had received an enthusiastic response from institutional investors and was oversubscribed 3.41 times on the first day. “The government will now sell the additional shares available under the greenshoe option,” he said.

Retail investors and eligible employees can participate in the OFS on Wednesday. As much as 10% of the offer is reserved for retail investors, while up to 25,000 shares have been earmarked for eligible employees.

According to BSE shareholding data, the Indian government remained the largest shareholder in Hindustan Copper, holding a 66.14% stake in the company at the end of the June-ended quarter. The proposed OFS could reduce the government's holding, depending on the final extent of the stake sale.

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