The government has put 5.8 crore shares on offer under the offer for sale (OFS), with Chawla saying the timing is favourable as metal prices are rising. He also pointed to Hindustan Copper’s plans to modernise its mining operations and increase output.
“The forecasts are good. The future is even better,” Chawla said, adding that the company has “very far-sighted capital investment plans” to expand and modernise its mining operations.
Chawla said the government is deliberately leaving room for Hindustan Copper to raise capital in the market and fund its expansion. The stake reduction is part of a broader capital-management approach under which the government balances stake sales with the company’s future investment requirements.
He said the government’s capital-management framework also requires public sector undertakings (PSUs) to maintain a fair dividend policy, with 30% of profit after tax or 4% of net worth, whichever is higher, to be shared with investors.
On the possibility of further stake sales in Hindustan Copper after the government reaches 60%, Chawla kept the outlook open, saying decisions would depend on the company’s capital requirements and the government’s broader asset-management strategy.
Meanwhile, Chawla ruled out an immediate stake sale in Hindustan Zinc amid market speculation. “Not immediately, not at the moment,” he said.
On the government’s broader disinvestment programme, Chawla said DIPAM remains confident of meeting its ₹80,000 crore 2026-27 (FY27) disinvestment target and its obligations towards small investors.He declined to comment on specific strategic-sale transactions, including IDBI Bank, Container Corporation of India (CONCOR) and BEML, saying DIPAM does not comment on transactions that are in process.
The government has also reduced its holding in Life Insurance Corporation of India (LIC) to around 90% following the ₹31,500 crore stake sale. Chawla said the government had completed the reduction nearly a year ahead of the deadline, indicating a pause in further dilution for now.
Watch the full conversation here
Chawla said DIPAM has strengthened its ability to time stake sales through an in-house market research unit, market professionals and an “operation room” called Kurukshetra”. The team conducts asset-specific research rather than relying only on the broader market direction.
“There is time to do good things all the time,” Chawla said, explaining DIPAM’s approach to deciding when to bring government-owned assets to the market.
Catch all the latest updates from the stock market here
