Summary:
Hindustan Copper shares fell up to 7% after the government opened an OFS to sell up to a 6% stake at a 10.38% discount to the previous close. The selling pressure came despite strong Q1 FY27 results, with net profit rising 162% and revenue increasing 81% year-on-year. The company's mine expansion plans and rising long-term copper demand remain key growth drivers.
Hindustan Copper shares declined sharply on Tuesday, August 25, after the Government of India opened an Offer for Sale (OFS) to divest a 3% stake in the state-owned copper producer, with an option to sell an additional 3% if the issue is oversubscribed. The stock fell as much as 7% to ₹534.20 on the NSE, compared with Monday’s close of ₹574.15, before recovering some losses to trade around ₹545.40, down about 5%.
The immediate pressure on the stock came from the government’s stake-sale announcement and the steep discount offered through the OFS. The floor price has been fixed at ₹514 per share, representing a 10.38% discount to Monday’s closing price. The additional supply of shares through the OFS also weighed on investor sentiment.
Government to Sell Up to 6% Stake
Hindustan Copper will initially sell 2,90,10,721 equity shares, representing 3% of the company’s total issued and paid-up equity share capital. In case of oversubscription, the government can exercise the green shoe option to sell another 2,90,10,721 shares, taking the total stake sale to 6%.
The OFS opened for non-retail investors on August 25 from 9:15 am to 3:30 pm, while retail investors will get an opportunity to participate on August 26. About 10% of the offer is reserved for retail investors, while 25,000 shares have been earmarked for eligible employees. Successful bids are expected to be settled and shares credited on or around August 27.
As of June 2026, the Government of India held a 66.14% stake in Hindustan Copper, while public shareholders owned the remaining 33.86%. The stake sale is part of the government’s disinvestment programme and is aimed at increasing public shareholding.
Strong Q1 Performance
Hindustan Copper reported a strong performance for the June 2026 quarter. Consolidated net profit jumped 162% year-on-year to ₹352 crore from ₹134 crore, while revenue from operations increased 81% to ₹937 crore from ₹516 crore. Profit before tax rose around 163% to ₹472 crore.
However, profit declined sequentially by 20% from ₹444.27 crore in the March 2026 quarter. The rise in quarterly revenue was supported by higher copper prices.
Expansion Plans Support Long-Term Outlook
Hindustan Copper is targeting an ore production capacity of 12.2 million tonnes per annum by 2030. The company is also progressing with the reopening of closed mines in Jharkhand, acquiring new mines in Chhattisgarh and Madhya Pradesh, and undertaking mine exploration in Chile.
Copper demand is expected to benefit over the long term from electric vehicles, renewable energy, power infrastructure, data centres, AI-led infrastructure and decarbonisation.
Stock Performance
Despite Tuesday’s decline, Hindustan Copper shares had gained 17.5% over the past month and 9% since the beginning of 2026. The stock has gained 1% over the past six months. It touched a 52-week high of ₹760.05 on January 29, 2026, and a 52-week low of ₹226.70 on August 28, 2025. As of August 24, its market capitalisation stood at ₹54,917.29 crore. 52 Week High Stocks
The sharp fall after the OFS announcement primarily reflects the discounted floor price and additional supply of shares, even as the company’s strong earnings and expansion plans continue to support its longer-term growth outlook.
