Hindustan Copper Stake Sale Draws Strong Demand, Government Exercises Greenshoe Option

The Indian government's offer for sale (OFS) in Hindustan Copper Ltd drew strong demand from institutional investors, prompting the Centre to exercise its greenshoe option to meet excess demand.

The OFS received bids reaching 3.41 times the shares on offer, exceeding the initial allocation of a 3% stake or 2.90 crore shares. The government will now sell an additional 3% stake, taking the total potential sale to 6%.

The floor price of ₹514 per share represents a more than 10% discount to the previous closing price, putting selling pressure on the stock. At this price, the Centre would raise about ₹2,982 crore by selling the full 6% stake.

Retail investors and eligible employees can participate in the OFS on Wednesday, with up to 25,000 shares reserved for them. The company's stock closed 7% lower at ₹533.20 on the BSE on Tuesday.