Disinvestment: Govt to offload upto 10% stake in Hindustan Copper; OFS opens on Sep 16

• The Centre plans to sell 5 percent of its stake in the company and exercise the greenshoe option to sell an additional 5 percent in case of oversubscription
• The floor price for the OFS is Rs 116 per equity share

New Delhi: Chasing a disinvestment target of Rs 1.75 lakh crore, the government is looking to offload up to 10 percent stake in Hindustan Copper Ltd through Offer for Sale (OFS), which opens for non-retail investors on September 16. The Centre plans to sell 5 percent of its stake in the company and exercise the greenshoe option to sell an additional 5 percent in case of oversubscription. The floor price for the OFS is Rs 116 per equity share.

"Government brings out "Offer for Sale" for 10 percent Equity stake sale in Hindustan Copper Ltd., including 5 percent Green-shoe option.The offer opens tomorrow for Non-Retail investors at a floor price of Rs.116 per share. Retail investors can bid on Friday," said Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey on Twitter.

Hindustan Copper OFS: Govt to sell 96,702,402 shares

The Promoter (the "Seller") proposes to sell up to 48,351,201 Equity Shares of the Company (representing 5 percent of the total issued and paid up equity share capital of the Company) ("Base Offer Size"), on September 16, 2021, ("T day") (for non-Retail Investors only) and on September 17, 2021 ("T+1 day") (for Retail Investors and for non-Retail Investors who choose to carry forward their un-allotted bids) with an option to additionally sell 48,351,201 Equity Shares (representing 5 percent of the total issued and paid up equity share capital of the Company) (the "Oversubscription Option") through a separate, designated window of the BSE Limited (the "BSE") and the National Stock Exchange of India Limited ("NSE", and together with the BSE, the "Stock Exchanges"), collectively representing 10 percent of the total issued and paid up equity share capital of the Company…," Hindustan Copper said in a regulatory filing to the stock exchanges on Wednesday.

A minimum of 25 percent of the Offer Shares shall be reserved for Mutual Funds and Insurance Companies, subject to receipt of valid bids at or above the floor price. 

Hindustan Copper

Hindustan Copper Ltd registered a net profit of Rs 110 crore in FY21 against a loss of Rs 598 crore in FY20. The PSU reported a total income of  Rs 1,822 crore in FY21, compared to Rs 888.81 crore in FY20.   

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