Shares of Hindustan Copper Ltd. will remain in focus on Wednesday, August 26, as the retail portion of the government's Offer For Sale opens for bidding. The retail OFS opens after the non-retail portion of the issue received a strong response on Tuesday.
Following the robust demand, the government has decided to exercise the entire green shoe option, taking the potential stake sale to 6% from the base offer of 3%. Here’s how retail investors can bid in the Hindustan Copper OFS:- Open your trading account and navigate to the OFS or Corporate Action section.- Select Hindustan Copper's OFS and check the floor price, bid quantity and other details.- Enter the quantity and bid price.
Investors can bid at the floor price or higher. A bid below the floor price will be rejected.- Ensure that sufficient funds are available in the trading account. The amount corresponding to accepted bids will be blocked until the allotment process is completed.
Retail investors are those who have an authorised share capital of up to ₹2 lakh. As per Hindustan Copper's June quarter shareholding pattern, the company had 12.78 lakh retail shareholders, who collectively held a 17.79% stake. The Hindustan Copper OFS received strong demand from institutional investors on the first day, with the issue subscribed 3.41 times.
The government received bids for 8.91 crore shares against 2.61 crore shares offered in the base issue, according to exchange data. The shares have been offered at a floor price of ₹514 apiece. Following the strong response, the government will exercise the entire green shoe option.
The Centre had initially offered to sell a 3% stake in Hindustan Copper, with an option to sell an additional 3% in case of oversubscription. The base offer comprises 2.61 crore shares. With the green shoe option, the total stake sale could increase to 6% of Hindustan Copper's equity.
The retail portion of the OFS will open on Wednesday, August 26, while 10% of the base issue has been reserved for retail investors. An additional 25,000 shares have been reserved for eligible employees. Why Hindustan Copper stands outHindustan Copper is India's only listed pure-play copper company and has access to around 45% of the country's copper ore reserves and resources.
The OFS is part of the government's disinvestment programme. Hindustan Copper is a state-run copper producer under the Ministry of Mines. Hindustan Copper shares ended 7.45% lower at ₹531.40 on Tuesday. The stock has gained more than 10% over the past month.