shares surged 5.6 per cent on Wednesday as the government’s Offer for Sale (OFS) opened for retail investors, after the issue received a strong response from institutional investors on the first day of bidding.
Hindustan Copper Ltd. Offer for Sale (OFS) received an enthusiastic response from the institutional investors and was oversubscribed 3.41 times on Day One. The Government has decided to exercise the entire green shoe option. Retail investors and employees get to bid on Wednesday,…
— Secretary, DIPAM (@SecyDIPAM)
At 3.07 pm, the stock traded at ₹554.55 on the NSE, rising to ₹562.60 from the previous close of ₹532.65.
The OFS was oversubscribed 3.41 times by institutional investors on Tuesday. Following the strong demand, the government decided to exercise the entire green shoe option, according to a social media post by the Department of Investment and Public Asset Management (DIPAM) Secretary.
The government had earlier announced the sale of 3 per cent equity in Hindustan Copper through the OFS, with an option to sell an additional 3 per cent stake under the green shoe option in case of strong demand.
With the full green shoe option being exercised, the potential stake sale will rise to 6 per cent.
The OFS has a floor price of ₹514 per share, while 10 per cent of the offer is reserved for retail investors. An additional 25,000 shares have been reserved for eligible employees.