The government's offer for sale in Hindustan Copper Ltd received strong demand from non-retail investors on Tuesday, with the issue subscribed more than three times. According to exchange data, the OFS received bids for 8.91 crore shares against 2.61 crore shares on offer, implying subscription of 3.41 times. The shares were offered at a floor price of Rs 514 apiece.
The stock was trading at Rs 531.40, above the OFS floor price, according to the data shared. The discount to the market price helped draw strong demand from investors.
Following the strong response, the government will exercise the greenshoe option. The Centre had offered to divest 3% equity in Hindustan Copper, with an option to sell an additional 3% in case of oversubscription.
The base offer comprised 2.61 crore shares. With the greenshoe option, the total stake sale can go up to 6% of the company’s equity.
Retail investors will be able to bid on Wednesday, August 26. The OFS opened for non-retail investors on August 25. Under the offer structure, 10% of the issue has been reserved for retail investors. An additional 25,000 shares have been reserved for eligible employees.
The OFS is part of the government’s disinvestment programme. Hindustan Copper is a state-run copper producer under the Ministry of Mines.
The strong subscription comes at a time when copper demand is being tracked closely by investors because of its use in power infrastructure, renewable energy, electric vehicles, data centres and industrial manufacturing.
For the government, the response gives room to offload a larger stake through the greenshoe route. For investors, the focus now shifts to retail demand on Wednesday and the final size of the stake sale after allocation
