PSU Copper Stock: Government Launches Rs 1,490 Crore Hindustan Copper OFS at Rs 514 Per Share; Check Key Details

On Tuesday, Indian equity benchmark indices traded lower, with the benchmark Nifty 50 index falling 66.55 points (0.27 per cent) to 24,152.50. Amid the market movement, Hindustan Copper share price fell 7.20 per cent to Rs 532.80 after the Government of India launched an Offer for Sale (OFS) of its stake in the company at a floor price of Rs 514 per share.

Government Launches Hindustan Copper OFS

The Government of India, through the President of India acting through the Ministry of Mines, has launched an Offer for Sale of equity shares of Hindustan Copper Limited. The OFS comprises a base offer of 2,90,10,721 equity shares, representing 3 per cent of the total issued and paid-up equity share capital of the company.

The seller has also retained an option to sell an additional 2,90,10,721 equity shares, representing another 3 per cent of the company's equity, in case of oversubscription. If the additional portion is fully exercised, the total stake offered through the OFS could rise to 6 per cent.

OFS Floor Price Fixed at Rs 514

The floor price for the OFS has been fixed at Rs 514 per equity share. Based on the stock's Tuesday price of Rs 532.80, the OFS floor price is around 3.53 per cent below the prevailing market price.
Also Read - Rekha Jhunjhunwala-Backed Multibagger Water Stock Signs Mega Kuwait Desalination Contract; FII & DII Stakes Rise

At the floor price, the base offer of 2,90,10,721 shares represents a transaction value of approximately Rs 1,490.15 crore. If the green-shoe option for another 2,90,10,721 shares is fully exercised, the total offer value at the floor price would be approximately Rs 2,980.30 crore.

The OFS is being undertaken through the stock exchange mechanism in accordance with the applicable SEBI regulations and OFS guidelines.

Two-Day OFS Schedule

The OFS will be conducted over two trading days. Non-Retail Investors will be able to place bids on August 25, 2026, while Retail Investors and eligible employees will be able to participate on August 26, 2026. Non-Retail Investors who choose to carry forward their un-allotted bids from the first day will also be able to participate on the second day.

The bidding window will remain open from 9:15 am to 3:30 pm on the respective trading days. The settlement of bids received during the OFS is scheduled for August 27, 2026, as the exchange has a clearing holiday on August 26, 2026.

Retail Investors and Employees Get Reservation

The OFS includes specific reservations for retail investors, Mutual Funds, insurance companies and eligible employees.

At least 10 per cent of the offer shares will be reserved for Retail Investors. The offer also provides for 25,000 equity shares to be reserved for eligible employees of Hindustan Copper.

In addition, a minimum of 25 per cent of the offer shares will be reserved for mutual funds and insurance companies, subject to receipt of valid bids at or above the floor price.

Allocation and Bidding Mechanism

For the Non-Retail category, allocation will be carried out on a price-priority basis at multiple clearing prices. Retail Investors can either bid at a price above the floor price or at the cut-off price.

The notice also states that Retail Investors will be treated as individual investors placing bids for offer shares of a total value of not more than Rs 2,00,000 across the stock exchanges.

Offer Can Be Withdrawn or Cancelled Under Specified Conditions

The seller has reserved the right to withdraw the offer before it opens, subject to the applicable OFS guidelines. The offer may also be cancelled if the aggregate number of valid orders received from Non-Retail Investors is insufficient to meet the base offer size.

The notice further lays down conditions regarding withdrawal, cancellation, modification and settlement of bids under the OFS mechanism.

About Hindustan Copper

Hindustan Copper Limited is a Government of India enterprise under the Ministry of Mines and is engaged in copper mining and related activities. The company is India's government-owned copper producer and has operations spanning the copper value chain.

The latest OFS represents a further government divestment in the company. The Government of India remains the seller in the proposed transaction, with the Ministry of Mines represented in the OFS notice.

The government has returned to the OFS route for Hindustan Copper after a gap of several years. Current reports also confirm that the government is offering an initial 3 per cent stake with a further 3 per cent green-shoe option at Rs 514 per share.

Share your thoughts on this development in the comments below.
Disclaimer: The article is for informational purposes only and not investment advice.