Government Returns to Hindustan Copper Stock Market with ₹514 Offer

The Government of India is returning to the Offer for Sale (OFS) route for Hindustan Copper Ltd after a five-year gap. The government plans to sell up to 6% of its equity in HCL, with a green-shoe option to divest an additional 3% if the offer is oversubscribed.

The OFS has been announced at a floor price of ₹514 per share, with 10% of the offer reserved for retail investors and 25,000 shares earmarked for eligible employees. The current stake in HCL held by the government stands at 66.14%, having reduced its holding through various transactions over the past decade.

The latest OFS comes after previous sales in 2015, 2016, and 2021, which saw the government's stake decrease from 89.95% to the current level. If the entire 6% offer is exercised this time, the government's holding in HCL would fall from 66.14% to about 60.14%. The sale could raise around ₹894 crore at the floor price.