Hindustan Copper share price plunged more than 7% in intraday deals on Tuesday, 25 August, as the offer for sale (OFS) to divest a 3% stake in the PSU company kicked off. Hindustan Copper shares opened at ₹540 against their previous close of ₹573.55 and dropped 7.2% to an intraday low of ₹532.40.
The PSU stock suffered strong losses as the Indian government is looking to sell up to a 6% stake in the company through the OFS at a floor price of ₹514 per share. The floor price represents a 10.45% discount to Hindustan Copper's closing price of ₹574 on the NSE on Monday. Based on the floor price, the proposed 6% stake sale is valued at around ₹3,000 crore, according to Mint's calculations.
The government is selling up to 2,90,10,721 shares, or 3% of the total paid-up shares, to non-retail investors on 25 August and to retail investors on 26 August, with an option to sell an additional 2,90,10,721 shares through a separate designated window on the BSE and the NSE.
Hindustan Copper shareholding
BSE shareholding data shows that the Indian government held a 66.14% stake in the company at the end of the June quarter of this year (Q1FY27). The proposed OFS could reduce the government's holding, depending on the final extent of the stake sale.
Retail shareholders collectively hold a 23.1% stake in the PSU. Mutual funds hold around 1% of Hindustan Copper.
Hindustan Copper share price trend
Hindustan Copper shares have delivered multibagger returns of 125% over the last year. The stock hit a 52-week high of ₹759.20 on 29 January and a 52-week low of ₹226.25 on 1 September.
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Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
