The Indian government is divesting up to a 6% stake in Hindustan Copper Ltd., a state-owned copper producer, through an Offer for Sale (OFS). This sale includes a 3% base offer and a 3% greenshoe option, which the government is confident will be fully exercised due to strong demand from institutional investors.
The floor price for the OFS was set at $6.15 per share (₹514), representing a discount of about 10.38% to the stock's closing price of $6.86 (₹573.55) on the BSE the day prior. The total sale, if the full 6% is exercised, is expected to generate approximately $360 million (₹3,000 crore) for the government. This divestment will reduce the government's stake in Hindustan Copper from around 66.1% to just over 60%.
The move is part of the government's broader capital management strategy. Arunish Chawla, Secretary of the Department of Investment and Public Asset Management (DIPAM), stated that the timing is favorable due to rising metal prices and Hindustan Copper's plans for modernization and increased output. He also noted that leaving a 10% margin in government ownership provides room for the company to raise capital in the market for its expansion plans. The government has already achieved nearly 70% of its $9.6 billion (₹80,000 crore) disinvestment target for the fiscal year 2027 with this sale, having raised around $6.6 billion (₹55,697 crore) so far. Other planned divestments include LIC, Coal India, and NHPC. Chawla also explicitly ruled out an immediate stake sale in Hindustan Zinc.
