Hindustan Copper's OFS Offer Raises Questions Over Discount Availability

Hindustan Copper's offer for sale (OFS) opened to retail investors on Wednesday, with analysts weighing in on whether to participate.

The government plans to sell a 3% equity stake in Hindustan Copper as part of the base offer, with an additional 3% available through the green shoe option. The floor price was set at Rs 514 per share, resulting in a nearly 10% discount from the stock's previous closing price of Rs 531.40 on the NSE.

Vaqarjaved Khan, a senior fundamental analyst at Angel One, expressed skepticism about the offer, noting that many retail investors may be drawn to the 10% discount on opening day. However, Khan pointed out that this discount is already stale and that the stock has sharply crashed more than 7% since then.

Khan also noted that the price for retail investors is actually decided by institutional bidders on Tuesday, not on the day they participate in the OFS. As a result, there's no guarantee of a discount for retail investors, according to Khan.