Hindustan Copper Plunges 7% as Indian Government Sells Stake

Hindustan Copper's share price plummeted more than 7% on August 25, as the Indian government initiated an offer for sale (OFS) to divest a 3% stake in the PSU company. The stock opened at ₹540, down from its previous close of ₹573.55, and dropped to an intraday low of ₹532.40.

The OFS aims to sell up to a 6% stake in Hindustan Copper through the floor price of ₹514 per share. This represents a 10.45% discount to the company's closing price on the NSE on Monday, which was ₹574.

According to Mint calculations, the proposed 6% stake sale is valued at around ₹3,000 crore based on the floor price. The Indian government currently holds a 66.14% stake in Hindustan Copper, while retail shareholders collectively hold a 23.1% stake, and mutual funds hold around 1%.