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Hindustan Copper OFS Opens For Retail Investors
The Economic Times··26 Aug
The government's offer for sale in Hindustan Copper opened for retail investors after the non-retail tranche was oversubscribed more than three times, triggering the greenshoe option. The floor price is Rs 514 a share, valuing the up to 6 percent stake sale at nearly Rs 2,982 crore. Shares fell over 7 percent on the non-retail opening day.
Prism
What It Means For You
- If you're a retail investor considering the OFS, analysts note the floor price is not the effective entry price since institutional demand already set the real discount.
- Existing Hindustan Copper shareholders should note the 7 percent share price drop reflects the government's stake sale, not a change in the company's underlying business.
- Anyone tracking government divestment can add this to a pattern that includes recent stake sales in LIC, Coal India and NHPC.
What's Happening
- The Hindustan Copper OFS opened for retail investors after the non-retail tranche saw more than 3x subscription, triggering the government's greenshoe option for an extra 3 percent stake.
- The floor price was fixed at Rs 514 per share, a discount of over 3 percent to the previous close, valuing the sale at nearly Rs 2,982 crore.
- Shares fell more than 7 percent after the OFS opened for non-retail investors, marking the stock's worst single-day fall in around five months.
What's Behind The Copper Stock's Strong Run
- Hindustan Copper's first-quarter profit rose 163 percent year-on-year to Rs 353 crore, with margins near 54 percent, according to company results.
- The company plans to invest Rs 7,189 crore to expand mining capacity to 12.2 million tonnes per annum by FY30.
- Hindustan Copper shares have delivered 125 percent returns in one year and over 354 percent in five years, reflecting strong long-term investor interest.
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