Hindustan Copper shares gain over 3.5% as retail bidding for OFS begins; other factors to know

Shares of Hindustan Copper, the state-owned copper producer, were trading with notable gains on Wednesday, August 26, a day after the stock witnessed a sharp slide following the launch of the government’s offer for sale (OFS).

The stock gained as much as 3.59% to hit a high of ₹551.80 on the NSE. The retail bidding for the OFS began today.

Details shareholders need to know

Institutional investors on Tuesday oversubscribed Hindustan Copper share sale by putting in bids worth over ₹4,600 crore.

As against the 2.61 crore shares reserved for them, institutional investors put in bids for over 8.91 crore shares, oversubscribing the issue 3.41 times.

At an indicative price of ₹520.35 per share, the bids are valued at over ₹4,600 crore.

The government is selling over 5.80 crore shares, or up to a 6% (including 3% green shoe option) stake in Hindustan Copper through a two-day Offer-for-Sale (OFS) at a floor price of ₹514 apiece.

The OFS opened for retail buyers on Wednesday.

The floor price was set at a 10.38% discount over Monday's closing share price.

"The government has decided to exercise the entire green shoe option," Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said on X.

On Tuesday, Hindustan Copper shares fell 7.04% to ₹533.20 apiece on BSE.

The government currently has a 66.14% equity holding in Hindustan Copper.

Funds mopped up so far

So far in FY27, the government has raised ₹52,716 crore through PSU disinvestment, including OFS transactions in eight public-sector companies and remittances from the Specified Undertaking of the Unit Trust of India (SUUTI).

For the full FY27, the Union Budget has set a target of ₹80,000 crore from disinvestment and asset monetisation, leaving the government with around ₹27,284 crore to raise through the remainder of the fiscal year.

Copper prices hit record high

Another factor keeping Hindustan Copper shares in focus is the surge in copper prices to record levels.

According to Mining.com, copper prices in New York hit a fresh record on Tuesday, while prices in London moved closer to their all-time highs.

Comex copper for September delivery rose as much as 1.8% to $6.7270 a pound, or around $14,830 a tonne, surpassing the previous record of $6.7140 set on August 12.

On the London Metal Exchange (LME), the three-month copper contract gained 0.4% to $14,251 a tonne after hitting an intraday high of $14,343, coming within 1.3% of its all-time peak of $14,527.50.

The rally has been driven partly by concerns over potential US import tariffs, which have encouraged metal flows into US warehouses and tightened supply elsewhere.

Expansion plans

Last week, Hindustan Copper Ltd (HCL) said it was planning capital investment of over ₹7,000 crore over the next five to six years, as part of an expansion drive that includes exploration, mine revivals and strategic partnerships.

In a regulatory filing, the company said it has taken several strategic initiatives in the copper and critical minerals segment, and has lined up capital investment of over ₹7,000 crore planned in the next 5-6years.

The development assumes significance in the wake of the country's rising copper demand, driven by infrastructure expansion, renewable energy, electric mobility and other clean-energy applications.

The company, in a regulatory filing, said it has added 135.52 million tonnes of copper ore reserves and resources in the past three years, underlining a steady improvement in its resource base.