Retail investors give Hindustan Copper share sale a miss

Retail portion of OFS garners just 30% subscription with 3.8 million bids against 12.9 million on offer

Retail investors gave Hindustan Copper’s share sale a miss on Friday amid weakness in price. The retail portion of the offer-for-sale (OFS) garnered only 30 per cent of the subscription with only 3.8 million bids as against 12.9 million on offer.

The company’s share fell 3.8 per cent to Rs 59.75 apiece on the BSE. The base price for the Rs 400-crore OFS was set at Rs 62 a share. Retail investors were offered an additional five per cent discount. The central government is selling seven per cent stake in Hindustan Copper as part of its disinvestment programme. Under-subscription in the retail segment will not impact the share sale, as the offering was subscribed 1.5 times in the non-retail category. The unsubscribed portion in the retail segment will now be sold to non-retail bidders, according to Sebi’s rules.