Hindustan Copper OFS: Govt to divest up to 6% stake at ₹514 floor price
Synopsis
The Centre is selling up to 6% of Hindustan Copper at ₹514 a share — a 10% discount to Monday's close — backed by a company that nearly doubled its net profit in FY26. With a green shoe option in play and retail investors getting a dedicated slice, the OFS is a test of market appetite for PSU divestment at a time when copper demand is surging globally.
Key Takeaways
The Central government announced an OFS of up to 6 per cent equity in Hindustan Copper Limited on 24 August .
Floor price is set at ₹514 per share — a 10 per cent discount to HCL's NSE closing price of ₹574 .
Initial offer is 3 per cent equity, with an additional 3 per cent green shoe option on oversubscription.
10 per cent of the offer is reserved for retail investors; 25,000 shares set aside for eligible employees.
HCL reported a 97.5 per cent jump in net profit to ₹918.54 crore in FY 2025–26 , with revenue up 48.6 per cent to ₹3,077.92 crore .
The Central government on Monday, 24 August announced it will offload up to 6 per cent of its equity in public sector undertaking Hindustan Copper Limited (HCL) through an Offer for Sale (OFS), with the floor price fixed at ₹514 per share. The move marks one of the more significant disinvestment actions by the Centre in the current financial year.
Structure of the OFS
The government will initially divest 3 per cent equity in HCL, with an option to offload an additional 3 per cent via a green shoe clause if investor demand warrants oversubscription. The Department of Investment and Public Asset Management (DIPAM) Secretary confirmed the details in a post on X, stating: 'Government of India offers to divest 3 per cent equity in Hindustan Copper Limited (HCL) through an Offer for Sale (OFS), with an option to divest an additional 3 per cent (green shoe) in case of oversubscription.'
Of the shares on offer, 10 per cent is reserved for retail investors, and an additional 25,000 shares have been set aside for eligible employees.
Floor Price and Market Discount
The floor price of ₹514 per share represents a 10 per cent discount to HCL's closing price of ₹574 on the National Stock Exchange (NSE) on Monday. The discount is designed to attract institutional and retail participation, a standard mechanism in government OFS transactions.
A green shoe option, for context, is a special clause in an offering agreement that permits underwriters to sell more shares than originally planned when investor demand is high — functioning as a market stabiliser to limit price volatility post-listing.
Hindustan Copper's Financial Performance
Hindustan Copper has reported strong financials heading into this divestment. For financial year 2025–26, the company's revenue from operations surged 48.6 per cent year-on-year to ₹3,077.92 crore, while net profit nearly doubled — jumping 97.5 per cent to ₹918.54 crore.
The momentum carried into the first quarter of FY 2026–27 (April–June), with HCL posting a net profit of ₹353 crore on revenue of ₹936.5 crore. The robust earnings backdrop is likely to underpin investor appetite for the OFS.
Disinvestment Context
This OFS is part of the Centre's broader disinvestment agenda for the fiscal year. Notably, copper's strategic importance has grown amid global demand from the electric vehicle and renewable energy sectors, lending additional relevance to HCL's market positioning. The government retains majority ownership following the stake sale, preserving its control over the PSU. Markets will watch the subscription levels closely — particularly whether the green shoe option is triggered — as a gauge of institutional confidence in the divestment programme.
Point of View
Making the 10% floor discount less a distress signal and more a demand-generation tool. What is worth watching is whether the green shoe option gets triggered: full subscription would signal that institutional appetite for PSU divestment remains intact despite a choppy broader market. Copper's structural demand story — driven by EVs and energy transition — adds a sector tailwind that earlier HCL divestments did not enjoy. The Centre would do well to use that narrative more aggressively in its investor outreach.
NationPress
24 Aug 2026
Frequently Asked Questions
What is the Hindustan Copper OFS announced by the government?
The Central government has announced an Offer for Sale (OFS) of up to 6 per cent equity in Hindustan Copper Limited, with a floor price of ₹514 per share. The initial offer covers 3 per cent, with an additional 3 per cent available via a green shoe option if the issue is oversubscribed.
What is the floor price for the Hindustan Copper OFS and how does it compare to the market price?
The floor price is ₹514 per share, which is a 10 per cent discount to HCL's closing price of ₹574 on the NSE on Monday, 24 August. The discount is intended to attract retail and institutional investors.
Who is eligible to participate in the Hindustan Copper OFS?
The OFS is open to institutional and retail investors, with 10 per cent of the offer reserved specifically for retail participants. An additional 25,000 shares have been set aside for eligible HCL employees.
What is a green shoe option in this context?
A green shoe option allows the government to sell an additional 3 per cent equity in HCL — beyond the initial 3 per cent — if investor demand exceeds the base offer. It acts as a market stabiliser, helping control price swings around the time of the sale.
How has Hindustan Copper performed financially ahead of this divestment?
HCL posted a 97.5 per cent jump in net profit to ₹918.54 crore in FY 2025–26, with revenue from operations rising 48.6 per cent to ₹3,077.92 crore. In Q1 FY 2026–27 (April–June), the company recorded a net profit of ₹353 crore on revenue of ₹936.5 crore.
