Hindustan Copper falls 8% on discounted floor price for OFS

The stock dipped 8% to Rs 65.25 after the government fixed floor price of Rs 64.75 per share for OFS

Hindustan Copper dipped 8% to Rs 65.25 on BSE in early morning trade after the government fixed floor price for its offer for sale at Rs 64.75. The floor price is at a discount of 8.35% over Tuesday’s closing price of Rs 70.65 on the BSE.

The government will sell 37 million equity shares in Hindustan Copper at a floor price of Rs 64.75 apiece through a two-day offer-for-sale (OFS) beginning today, with an option to issue a similar number of shares in case of over subscription.

“The President of India, acting through and represented by the Ministry of Mines, Government of India proposes to sell up to an aggregate of 37 million equity shares of face value of Rs. 5 each of Hindustan Copper, on August 02, 2017 (for non-Retail Investors) and August 03, 2017 (for Retail Investors and for non-Retail Investors who choose to carry forward their bids) with an additional option to sell up to 37 million equity shares of the company,” the company said in a regulatory filing.

The government currently holds 82.88% stake in Hindustan Copper and the stake sale with green shoe option would help the government meet the minimum public shareholding norm of market regulator Sebi.

At 09:21 am; the stock was trading 7% lower at Rs 65.70, as compared to 0.12% rise in the S&P BSE Sensex. A combined 715,335 shares changed hands on the counter on NSE and BSE so far.