Hindustan Copper OFS Sees Strong Institutional Demand, Government Exercises Full Green-Shoe Option

The Indian government's offer for sale (OFS) of Hindustan Copper Ltd. shares received strong institutional demand, prompting them to exercise their full green-shoe option. The OFS was oversubscribed 3.41 times on the first day, with bids for 8.91 crore shares against a total issue size of 5.22 crore shares.

The government had initially offered to sell a 3% stake in Hindustan Copper through the OFS, but with the full green-shoe option being exercised, they will now sell up to 6% of their stake in the copper producer at the floor price of ₹514 per share. This translates to an estimated sale worth around ₹3,000 crore.

Hindustan Copper shares fell 7.45% on Tuesday to close at ₹531.40 on the NSE after the OFS announcement, but institutional investors remained enthusiastic about the stake sale. The retail and employee portions of the OFS will open for bidding on Wednesday, August 26.