Street signs: Retail investors cash in on Hindustan Copper

Govt had set the floor price for the share sale at an 8% discount to the prevailing market price

Retail investors cash in on Hindustan Copper

Retail investors cashed in on the arbitrage opportunity in Hindustan Copper's offer for sale (OFS) last week. The government had set the floor price for the share sale at an eight per cent discount to the prevailing market price. Retail investors were offered an additional five per cent discount on the offer price. While the company's share price fell sharply on the OFS announcement, it still left an arbitrage opportunity for retail investors to pocket gains between five and eight per cent. Savvy retail investors sold shares in the secondary market and applied