Buzzing stock: Hindustan Copper dips 7 percent due to OFS

Yet another Offer For Sale (OFS) by the government is opening today. After National Fertilizers, the government is set to sell 4 percent stake or 3.7 crore shares in Hindustan Copper. A two-day Offer for Sale is starting today at a floor price of Rs 64.75. Government would fetch Rs 240 crore from this OFS.

In case of over subscription, the government is ready to issue similar number of shares i.e. additional 3.7 crore equity shares which would fetch Rs 480 crore to the Government. 

Post this OFS, the government’s holding in Hindustan Copper will decline to 78.8 percent. 

Today the OFS would remain open for institutional investors and retail investors can bid for the same tomorrow, August 3, 2017. Any retail investor can bid for not more than Rs 2 lakh and would get 5 percent discount on the cut-off price.

On Tuesday, the stock closed at price of Rs 70.65. Today it opened at Rs 65.75 and touched intra-day low of Rs 65.25. It has dipped today by almost 7 percent due to the OFS.

Hindustan Copper is a government owned corporation engaged in activities like mining, beneficiation, smelting, refining and continuous cast rod manufacturing.