loader2
Login Open ICICI 3-in-1 Account
  • Text Size
  • Text to Speech
  • Color Contrast
  • Pause Animations

Open ICICI
3-in-1 Account

Manage your Savings, Demat and Trading Account conveniently at one place

+91

BLOG

Hindustan Copper has informed the exchanges that the Government of India, the company’s largest shareholder, will sell up to 2.9 crore equity shares

ICICIdirect Research 25 Aug 2026 DISCLAIMER

News: Hindustan Copper has informed the exchanges that the Government of India, the company’s largest shareholder, will sell up to 2.9 crore equity shares, representing nearly 3% stake in the company, through an Offer for Sale (OFS) at a floor price of ₹514/share, (i.e. at a discount of ~12% to the last closing price). Further, the government has an oversubscription option to sell an additional 2.9 crore equity shares, which could take the total divestment size to ~5.8 crore shares, equivalent to nearly 6% equity stake, with a total offer size of ~₹2,981 crore. The OFS for non-retail investors will open on 25th August’26, while the offer for retail investors will open on 26th August’26.

View: With the proposed stake sale, the government’s shareholding in Hindustan Copper is expected to reduce from 66.14% to 60.14%, assuming the oversubscription option is fully exercised. We believe the stake sale is sentimentally negative for the stock given the floor price of ₹ 514 is in steep discount to the prevailing market price of ₹ 574 with stock trading at valuations (~30x EV/EBITDA on TTM basis), which in our view is fairly valued given robust copper prices, favorable domestic demand prospects especially sunrise sectors such as EVs, renewable energy and data center, and healthy capacity expansion in pipeline.

Impact: Negative

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere