Hindustan Copper declines for fifth day

Hindustan Copper slipped 1.44% to Rs 109.25, extending losses for fifth day.

The stock has declined by 13.36% in five sessions, from its recent closing high of Rs 126.10 recorded on 14 September 2021.

The stock has fallen 44.51% from its 52-week high of Rs 196.90 hit on 11 May 2021. The stock is trading below its 50-day, 100-day and 200-day daily simple moving average (SMA) placed at 131.18, 145.72 and 119.43, respectively.

On the technical front, the stock's RSI (relative strength index) stood at 32.924. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

On 15 September 2021, the Government of India announced an offer for sale (OFS) for offloading some shares of Hindustan Copper.

Through the OFS, the Government of India (GoI) proposed to sell up to 4,83,51,201 equity shares (representing 5% stake), with an option to sell an additional 5% stake or 4,83,51,201 equity shares in case of oversubscription. GoI held 72.76% stake in Hindustan Copper as of 30 June 2021.

The floor price for the OFS is Rs 116 per equity share, at a 6.83% discount to Hindustan Copper's closing price of Rs 124.50 recorded on the BSE on Wednesday, 15 September 2021.

The OFS opened on Thursday (16 September 2021) for non-retail investors, while both retail as well as non-retail investors were allowed to subscribe on Friday (17 September 2021). A total of 10% of the offer size was reserved for retail investors.

On Thursday (T day), the OFS received subscription for 6,14,66,049 shares or 141.25% against the base non-retail offer size of 4,35,16,080 shares.

Following the strong response on T day, the government decided to exercise the oversubscription option of 1,99,44,409 shares (2.06% equity) in addition to the base offer.

Accordingly, the final share sale was 6,82,95,610 shares, constituting 7.06% of the paid-up equity share capital of Hindustan Copper.

As on 15:30 IST on Friday (T+1 day), the OFS received total bids for 25,18,144 shares or 36.87% of the enhanced total retail offer size of 68,29,561 shares. All the bids were placed by retail investors.

Hindustan Copper is engaged in exploration, exploitation, mining of copper and copper ore, including beneficiation of minerals, smelting and refining.

The company's consolidated net profit rose 53.69% to Rs 45.63 crore on a 37.97% decline in net sales to Rs 267.60 crore in Q1 FY22 over Q1 FY21.

Powered by Capital Market - Live News