- The government's Offer for Sale (OFS) in Hindustan Copper Limited received a strong response from institutional investors, with the issue getting oversubscribed 3.41 times on the first day of bidding.
- The Department of Investment and Public Asset Management (DIPAM) Secretary announced that the government has decided to exercise the entire green shoe option following the strong institutional demand.
- The stock closed at Rs 531.40 per share on the NSE, declining more than 7 per cent by closing on Tuesday, and the floor price of Rs 514 is below that closing price.
Hindustan Copper Limited's Offer for Sale (OFS) received an enthusiastic response from institutional investors, being oversubscribed 3.41 times on its first day. The government announced it would exercise the full green shoe option, raising the potential stake sale to 6% due to strong demand.1
The OFS, which opened for retail investors and employees on Wednesday, initially offered 3% equity in Hindustan Copper, with an additional 3% stake available under the green shoe option. The floor price was set at Rs 514 per share, with 10% of the offer reserved for retail investors and an additional 25,000 shares for eligible employees.
Despite the positive response, the stock closed at Rs 531.40 per share on the NSE, reflecting a decline of more than 7% by the end of the day. The floor price is below Tuesday's closing price, although the gap has narrowed significantly following the day's decline. The government's decision to fully exercise the green shoe option underscores the strong institutional demand observed on the first day of bidding.
“The stock closed at Rs 531.40 on the NSE, down over 7% on Tuesday, with the floor price of Rs 514 now below the closing price. DIPAM Secretary announced the decision via social media, citing enthusiastic institutional response.”
