Hindustan Copper Shares Surge 2.64% Amidst Strong Institutional Demand

Hindustan Copper's shares have surged by 2.64% to ₹546.70, driven by strong institutional demand for its stake sale and record global copper prices.

The company is currently participating in an Offer for Sale (OFS), with the retail portion opening today. The government is divesting up to a 6% stake in Hindustan Copper, with the floor price set at ₹514 per share, representing a discount of over 10% from Monday's closing price.

The non-retail portion of the OFS was oversubscribed by 3.41 times on Tuesday, leading the government to exercise the full 3% greenshoe option and increase the total offer size to 6%. This strong institutional appetite is instilling confidence in the market as retail investors now participate.

Global copper prices have soared to record highs, with Comex copper for September delivery reaching $6.7270 per pound on Tuesday, equivalent to approximately $14,830 a tonne. The London Metal Exchange (LME) three-month contract also registered its highest-ever closing price of $14,251 a tonne.