Shares of Hindustan Copper Ltd (HCL) gained around 3.50 per cent today as the retail bidding for the offer for sale (OFS) began. The action in the stock comes a day after it witnessed a sharp decline as the government launched the OFS. The government is selling over 5.80 crore shares, or up to 6 per cent, in the state-owned copper producer. This 6 per cent includes a 3 per cent green shoe option. The government is reducing its stake through the two-day Offer-for-Sale (OFS) at a floor price of Rs 514 apiece. The floor price was set at a 10.38 per cent discount over Monday’s closing share price.
Hindustan Copper share price
The stock started the trading session in the red even as benchmark indices Sensex and Nifty traded higher in early trade on Wednesday amid a positive trend in global equities and a sharp decline in crude oil prices. Foreign fund inflows also added to the positive trend in the domestic markets. While the 30-share BSE Sensex climbed 285 points to 77,944.02 in early trade, the 50-share NSE Nifty was up 23.25 points to 24,356.10.
Amid this, the stock started the trading session at Rs 527, down Rs 6.2 or 1.16 per cent from the previous close of Rs 533.20. However, the stock picked up momentum amid a spurt in volume of more than 1.89 times and touched an intraday high of Rs 551.80, a gain of Rs 18.6 or 3.48 per cent.
Last seen, the stock was trading at Rs 545.15, with a gain of Rs 11.95 or 2.24 per cent, and the market cap of the company stood at Rs 52,702.81 crore.
Institutional buyers oversubscribe Hindustan Copper OFS
Earlier on Tuesday, institutional investors oversubscribed Hindustan Copper share sale by putting in bids worth over Rs 4,600 crore.
As against the 2.61 crore shares reserved for them, institutional investors put in bids for over 8.91 crore shares, oversubscribing the issue 3.41 times. At an indicative price of Rs 520.35 per share, the bids are valued at over Rs 4,600 crore.
So far in the current fiscal year, the government has mopped up Rs 52,716 crore via PSU disinvestment through OFS in eight PSUs and remittances from SUUTI.
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