- Hindustan Copper's Q1 FY27 profit rose to ₹353 crore, and revenue surged 81% to ₹936 crore, helped by operational leverage and elevated global copper prices.
- The government has launched an Offer for Sale in Hindustan Copper, which includes a 'Green Shoe' option.
- The government is selling the additional stake because it needs funds; it has raised about ₹52,700 crore so far this financial year, with Hindustan Copper being one of several PSU stake sales.
Hindustan Copper has seen a significant uptick in its financial performance, with Q1 profit rising to ₹353 crore and revenue surging 81% to ₹936 crore. This growth is attributed to operational leverage and elevated global copper prices since early 2026.
The government recently announced an Offer for Sale (OFS) of its stake in Hindustan Copper, increasing the planned sale from 3% to 6% due to overwhelming demand from institutional investors, who bid for 3.41 times the shares on offer. This move is expected to raise nearly ₹3,000 crore for the government, which has already raised about ₹52,700 crore this financial year through various PSU stake sales.23
The green shoe option typically allows companies to sell additional shares during an IPO to stabilize stock prices, but in this case, the government is selling additional stakes without a stabilisation mechanism. There is no share-lending arrangement or buyback obligation if the stock price falls, as the government is the majority promoter.
Historically, the term 'green shoe' originates from Green Shoe Manufacturing, the first company to include an over-allotment clause in its IPO, allowing underwriters to sell more shares than planned if demand was strong.
“The government has raised about ₹52,700 crore so far this financial year through PSU stake sales, with Hindustan Copper being one of several. The company's strong performance, driven by operational leverage and elevated global copper prices since early 2026, may justify the premium pricing.”
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