Government Plans 6% Stake Sale in Hindustan Copper Through OFS

The Centre will initially offer a 3% stake in Hindustan Copper, with a green-shoe option for another 3%, at a floor price of ₹514 per share.

Government Announces OFS

The Government of India has announced plans to sell up to a 6% stake in Hindustan Copper Limited (HCL) through an Offer for Sale (OFS), as part of its ongoing public-sector disinvestment programme.

The government will initially offer a 3% equity stake, with an option to sell an additional 3% through the green-shoe mechanism if the issue is oversubscribed. The floor price has been fixed at ₹514 per share.

Floor Price Set At ₹514

The OFS floor price represents a discount to Hindustan Copper's latest market price. The company's shares closed at around ₹574.15 on the NSE on August 24, making the floor price roughly 10% below the prevailing market level.

The discount could make the offering attractive to investors, although the final price and total stake sold will depend on demand during the OFS.

Green-Shoe Option Explained

Under the base offer, the government will divest 3% of its holding. If investor demand exceeds the initial offer, it can exercise the green-shoe option to sell another 3%.

This would take the total government stake sale to 6%. The government currently holds 66.14% of Hindustan Copper, according to the company's latest profile.

Retail Investors Get Reservation

The OFS includes a 10% reservation for retail investors. An additional 25,000 shares have been earmarked for eligible employees, according to the announcement by the Department of Investment and Public Asset Management (DIPAM).

The structure is intended to widen participation while allowing institutional and other investors to acquire shares through the stock-exchange-based offer.

Hindustan Copper Earnings Rise

The stake sale comes after a strong performance by Hindustan Copper in the June 2026 quarter.

The company reported a sharp rise in profit, with consolidated net profit increasing to around ₹352 crore, compared with ₹134 crore in the same quarter a year earlier. Revenue from core operations also rose to approximately ₹937 crore, helped by higher copper prices.

The company's recent financial performance has increased investor attention around the stock.

Copper Demand Supports Outlook

Hindustan Copper is India's only vertically integrated copper producer, with operations spanning mining and copper production. The company is also pursuing expansion projects aimed at increasing ore production capacity.

Growing demand for copper from electric vehicles, renewable energy, power infrastructure and data centres has strengthened the long-term outlook for the metal.

Hindustan Copper's official profile says the company is targeting ore production capacity of 12.2 million tonnes per annum by 2030.

Disinvestment Drive Continues

The Hindustan Copper OFS is part of the government's broader effort to raise resources through public-sector asset sales and increase public shareholding in listed state-owned companies.

The government has already raised significant funds through disinvestment during the current financial year, with Hindustan Copper becoming another major OFS opportunity for investors.

The immediate focus will now be on investor demand, the extent to which the green-shoe option is exercised and the impact of the discounted floor price on Hindustan Copper's shares.