The government's offer for sale (OFS) in metals major Hindustan Copper opened for retail investors today, with analysts explaining whether investors should participate in the offer.
Hindustan Copper announced on Monday that the government plans to sell a 3% equity stake in the company as part of the base offer, with an additional 3% available as a green shoe option. The floor price was fixed at Rs 514 apiece, taking the total OFS size to nearly Rs 2,982 crore. The floor price implies a discount of over 3% from the stock's previous closing price of Rs 531.40 apiece on NSE.
The OFS received strong demand from non-retail investors on Tuesday, with the issue subscribed more than three times. Following the strong response, the government will exercise the greenshoe option. It now opens for retail investors today. Investors can participate between 9.15 am and 3.30 pm using the separate OFS window on NSE and BSE. A minimum of 10% of the offer size has been reserved for retail investors.
Should you participate in Hindustan Copper OFS?
Many retail investors may be attracted by 10% discount on opening day, but the number is already stale, Vaqarjaved Khan, Senior Fundamental Analyst at Angel One, noted. The stock sharply crashed more than 7% to record the worst single day plunge in around five months.
Also read | Hindustan Copper shares fall as govt opens OFS at 10% discount
Retail bids open on Wednesday, but the price they actually get is decided on Tuesday by the institutional book, Khan said, adding that the floor price of Rs 514 is not an entry price. If the non-retail book clears meaningfully above it, the discount retail is chasing simply isn't there anymore, he added. “And with no retail discount in this offer, there's no cushion to fall back on,” according to the analyst.
On the business, the Angel One analyst has no quarrel. Hindustan Copper’s Q1 profit soared 163% YoY to Rs 353 crore, with margins near 54% and Rs 7,189 crore going into taking capacity to 12.2 MTPA by FY30. But that margin move is copper doing the work, not the mine, Khan noted. “Bid if you want to own copper for three years. Don't bid for a two-day gain that may not exist,” he concluded.
Also read | Hindustan Copper OFS may not be a big draw for retail investors: Analysts
Hindustan Copper shareholding pattern
The government owned a 66.14% stake in LIC as of June 30, 2026, according to the latest data on the company’s shareholding pattern. More than 12.78 lakh retail shareholders meanwhile held around 18% stake in the insurance behemoth.
Notably, the OFS marks the latest step in the government’s divestment efforts, following recent stake sales in PSUs like LIC, Coal India, NHPC, NLC India and more.
Hindustan Copper share price
Hindustan Copper shares dropped over 7% on Tuesday after the OFS opened for non-retail investors at a 10% discount. The stock has however gained 10% in one month and 2% in 2026 so far.
In the longer term, the shares of the company have delivered 125% in one year, 267% in three years and more than 354% in five years. The company has a market capitalisation of Rs 51,388 crore, and the stock has a P/E ratio of around 49x.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
