Hindustan Copper slumps as OFS begins

Hindustan Copper tumbled 5.38% to Rs 117.80 after the offer for sale (OFS) opened for non-retail investors today, 16 September 2021.

Through the OFS, the Government of India proposes 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.

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 total OFS size (base size + green shoe) stands at 9,67,02,402 shares, representing 10% of outstanding equity shares of the company, the value of which (at floor price) aggregates to Rs 1,121.74 crore.

The Government of India held 72.76% stake in Hindustan Copper as of 30 June 2021.

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

As on 12:00 IST, the OFS received subscription for 1,97,28,450 shares. It was subscribed 45.34% on the base non-retail offer size of 4,35,16,080 shares and 22.67% on the total non-retail offer size (base size + green shoe) of 8,70,32,160 shares.

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.

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