The Indian government announced an offer for sale (OFS) of up to 6% stake in Hindustan Copper at a floor price of ₹514 per share, marking a 10.45% discount to the current market price. The OFS comes amid a 17% rise in Hindustan Copper’s stock this month, driven by increased global copper prices and supply concerns, according to livemint.com.
This OFS is the government’s second such sale this month and aims to partially divest its holding in the state-run copper mining and production company. The floor price of ₹514 per share is set to attract investors by offering a discount relative to the prevailing market price. The government’s move follows a strategic approach to monetize its stake while capitalizing on the recent surge in copper prices.
The sale reflects the government’s ongoing efforts to reduce its shareholding in public sector enterprises to raise funds and improve market liquidity. Hindustan Copper’s stock has benefited from global supply constraints and rising demand for copper, a key industrial metal. This OFS is part of a broader trend of stake sales in mining and metals companies, which have attracted investor interest due to favorable commodity cycles.
The OFS is scheduled for execution on August 24, 2026, with investors able to bid at or above the floor price of ₹514 per share. The government’s decision to price the shares below market aims to ensure robust subscription, leveraging the current positive momentum in copper prices and market sentiment.