Govt to sell up to 6% stake in Hindustan Copper via OFS, floor price Rs 514

The Centre will begin selling shares in Hindustan Copper Ltd on Tuesday (August 25) through a two-day offer for sale (OFS) at a floor price of Rs 514 per share, with an option to double the size of the sale if the base offer is oversubscribed.

The President of India, acting through the Ministry of Mines, will offer over 2.90 crore shares of face value Rs 5 each i.e. 3% of the company’s issued and paid-up equity capital, with an option to sell an equal number on oversubscription, according to a notice filed with the BSE on Monday. Exercising that option would take the total divestment to 6%. Further, the floor price has been fixed at Rs 514.

Bidding will run from 9.15 am to 3.30 pm on both days. Non-retail investors will bid on August 25 and retail investors, eligible employees will bid on August 26, alongside non-retail bidders who choose on day one to carry forward unallotted bids.

Settlement for bids received on both days will take place on August 27 because of a clearing holiday on August 26, the notice said.

At least 10% of the offer shares are reserved for retail investors, defined as individuals bidding up to Rs 2 lakh aggregated across both exchanges. A minimum 25% is reserved for mutual funds and insurance companies, subject to valid bids at or above the floor price. No other single bidder may be allotted more than 25% of the offer.

Moreover, 25,000 equity shares have been set aside for eligible employees. They may bid for up to Rs 5 lakh but are ordinarily capped at an allotment of Rs 2 lakh, with larger allotments possible only if the employee category is undersubscribed. Employees must bid at Tuesday’s cut-off price. According to the exchange filing, no discount has been offered to retail investors or employees.

Allocation in the non-retail category will be on a price-priority basis at multiple clearing prices. Retail bidders may either name a price above the floor or bid at the cut-off price.

DAM Capital Advisors, Emkay Global Financial Services and IDBI Capital Markets & Securities are the seller’s brokers, with DAM Capital acting as settlement broker. The NSE is the designated exchange and NSE Clearing the designated clearing corporation.

The government has retained the right to withdraw the offer before it opens, which would trigger a 10-trading-day cooling-off period and may cancel it after Tuesday’s bidding if non-retail demand at or above the floor price proves insufficient, the filing stated.