Hindustan Copper Stock Plunges as India Sells Up to 6% Stake
Hindustan Copper's stock price plummeted more than 7% in intraday trade on Tuesday, August 25, as the Indian government initiated an offer for sale (OFS) to divest up to a 6% stake in the company. The PSU stock opened at ₹540 against its previous close of ₹573.55 and dropped to an intraday low of ₹532.40.
The OFS is being conducted at a floor price of ₹514 per share, which represents a 10.45% discount to Hindustan Copper's closing price of ₹574 on the NSE on Monday. The proposed stake sale is valued at around ₹3,000 crore, according to Mint's calculations.
The government is selling up to 2,90,10,721 shares, or 3% of the total paid-up shares, to non-retail investors on August 25 and to retail investors on August 26. There is an option to sell an additional 2,90,10,721 shares through a separate designated window on the BSE and the NSE.