--- title: "Hindustan Copper launches 6% OFS at Rs 514 floor price" url: https://projectchintan.com/article/hindustan-copper-ofs-6-percent-e9idh publisher: Project Chintan author: Project Chintan Newsroom section: Politics published: 2026-08-25T08:33:02.851Z modified: 2026-08-25T12:00:09.093Z language: en-IN --- # Hindustan Copper launches 6% OFS at Rs 514 floor price The government kicked off an OFS to divest up to 6% in Hindustan Copper with a floor price of Rs 514. Bids opened for institutional investors on Aug 25, retail and employees follow, with settlement due Aug 27. The stock traded lower in early trade amid the announcement. ## Key takeaways - The government is divesting up to 6% of Hindustan Copper via an OFS, with a 3% base sale and a 3% greenshoe option. - Floor price for the OFS is Rs 514 per share, about a 10% discount to the prior close. - Bidding starts for institutions on Aug 25, followed by retail and employee allocations, with settlement targeted for Aug 27. ## What Happened The government initiated an Offer-for-Sale (OFS) to divest up to a 6% stake in Hindustan Copper, with a base offer of 3% and a greenshoe option of an additional 3% if demand exceeds supply. The OFS floor price was set at Rs 514 per share, representing a discount of roughly 10% to Hindustan Copper’s prior close, which was around Rs 573.55 (close to Rs 574 in some reports). Institutional bidding began on Tuesday, August 25, while retail participation was scheduled for Wednesday, August 26, with settlement and credit of shares expected around August 27. The government had reserved a portion for retail investors (about 10%) and allocated 25,000 shares for eligible employees. Across the first hour of trading, Hindustan Copper’s shares traded down roughly 6% to the mid-530s on major exchanges as investors priced in the sale. Multiple outlets reported the same core framework: a two-day OFS window, a 6% cap including the greenshoe, fixed floor price of Rs 514, and a discount to the latest closing price. In the broader context, several outlets noted the OFS as part of ongoing PSU disinvestment efforts this fiscal year and highlighted the government’s current stakeholding in Hindustan Copper (about two-thirds ownership prior to the sale). ## Why It Matters The OFS is part of a broader disinvestment drive intended to raise proceeds for the government and widen public shareholding in Hindustan Copper. With a floor price set at a slight discount to recent closes, the move aims to balance attracting buyers while offering liquidity to the government’s stake. The greenshoe option allows the government to sell extra shares if demand exceeds supply, potentially increasing the total divested stake to 6%. The result could influence Hindustan Copper’s trading dynamics in the near term and contribute to the year’s PSU disinvestment totals. ## Background Hindustan Copper is a state-run, vertically integrated copper producer under the Ministry of Mines. The government’s disinvestment program this year has already seen proceeds reported at over Rs 52,716 crore across PSUs. Hindustan Copper operates with ambitions to expand ore production capacity and reopen or acquire mines as part of an ongoing expansion plan, while maintaining active oversight of its mine expansion efforts. ## Key Facts - OFS to divest up to 6% stake in Hindustan Copper (base 3%, greenshoe 3%). - OFS floor price set at Rs 514 per share. - Discount to prior close reported around 10% (varies slightly by source: ~10%–10.5%). - Bidding window for institutional investors: August 25; for retail: August 26. - Settlement date targeted for August 27; initial trading impact noted as a fall of about 6%–7% in early trade. - Retail reservation: 10%; employees: 25,000 shares allocated. - Government stake is being offered under the disinvestment program; Hindustan Copper is controlled by the government through ownership stakes. ## What Happens Next Bids will be tallied across the two bidding sessions, with final allocations and contract notes expected to be issued later on August 25, and settlement to occur on or around August 27, subject to market operations and clearing timelines. If demand exceeds supply, the greenshoe option may be exercised to sell an additional 3% of stock, potentially increasing the total divested stake to 6%. The market will watch for retail bid outcomes, oversubscription levels, and how the price discovery process affects Hindustan Copper’s stock trajectory in the days following the OFS. --- Canonical: https://projectchintan.com/article/hindustan-copper-ofs-6-percent-e9idh Reported from: Multiple Sources