Summary:
The government’s Hindustan Copper OFS opened for retail investors after strong institutional demand pushed the total stake sale to 6%. The floor price is ₹514 per share, with the non-retail portion subscribed 3.41 times. While the OFS offers potential access at a discount, the final price will depend on institutional bidding, while Hindustan Copper’s strong earnings and copper expansion plans support its long-term outlook.
The government's Offer For Sale (OFS) in Hindustan Copper opened for retail investors on Wednesday, August 26, after strong demand from institutional investors on the first day. The Centre initially planned to sell a 3% stake in the state-run copper producer, with an additional 3% green shoe option. Following robust demand, the government decided to exercise the entire green shoe option, taking the potential stake sale to 6%.
Hindustan Copper OFS: Key Details
The base offer comprises 2.61 crore shares at a floor price of ₹514 per share. With the green shoe option, the total stake sale could rise to 6%, taking the overall OFS size to nearly ₹2,982 crore. The floor price represented a discount of more than 3% to Hindustan Copper's previous closing price of ₹531.40 on NSE.
The non-retail portion received bids for 8.91 crore shares against 2.61 crore shares offered, resulting in subscription of 3.41 times. At least 10% of the base issue has been reserved for retail investors, while an additional 25,000 shares have been reserved for eligible employees.
Retail investors can place bids through the separate OFS window on NSE and BSE between 9:15 am and 3:30 pm. Investors can bid at ₹514 or higher, while bids below the floor price will be rejected. Funds corresponding to accepted bids will remain blocked until allotment.
Why Did Hindustan Copper Shares Fall?
Hindustan Copper shares fell 7.45% to ₹531.40 on Tuesday after the OFS opened for non-retail investors. The sharp decline came as investors reacted to the government's stake sale and the ₹514 floor price, which initially offered a discount to the market price.
However, the stock has still gained more than 10% over the past month. Over longer periods, Hindustan Copper has delivered a 125% return in one year, 267% in three years and more than 354% in five years.
What Investors Should Do?
The headline discount may appear attractive, but the effective discount available to retail investors depends on the final price discovered through the institutional bidding process. Therefore, ₹514 should not automatically be treated as the stock's entry price.
The company's fundamentals remain supported by the copper cycle. Hindustan Copper reported a 163% YoY jump in Q1 profit to ₹353 crore, while margins were near 54%. The company is also investing ₹7,189 crore to expand capacity to 12.2 MTPA by FY30.
Recent Developments: Hindustan copper Price falls 7% on 25th Aug
Hindustan Copper's Long-Term Outlook
Hindustan Copper is India's only listed pure-play copper company and has access to around 45% of the country's copper ore reserves and resources. The company operates under the Ministry of Mines, making the OFS part of the government's broader disinvestment programme, which has also included stake sales in LIC, Coal India, NHPC and NLC India.
As of June 30, 2026, the government held a 66.14% stake in Hindustan Copper, while 12.78 lakh retail shareholders collectively owned 17.79%.
For investors with a three-year investment horizon and a positive view on copper, the OFS could offer an opportunity. However, investors looking for a quick listing-style gain should consider the risk that the institutional bidding price may leave little or no effective discount.
