Hindustan Copper OFS takes govt to nearly 70% of FY27 disinvestment target

Hindustan Copper OFS takes govt to nearly 70% of FY27 disinvestment target


₹2,982 crores. That’s how much the Hindustan Copper offer for sale (OFS) will fetch the government once the greenshoe option is exercised; and this will put the Centre within spitting distance of its FY27 divesment target of ₹80,000 crores.

With the 6% stake sale in Hindustan Copper through the OFS (including greenshoe), the government would have raised around ₹55,697 crores so far this financial year. That will work out to more than 69% of the full-year target, leaving just around ₹24,303 crores to be raised over the remaining 7 months of the financial year.

Hindustan Copper OFS sees strong institutional demand

The Hindustan Copper OFS launched on Tuesday, August 25, received an enthusiastic response from institutional investors. The issue was oversubscribed 3.41 times on day one.

Following this strong demand, the government decided to exercised the entire 3% greenshoe option, taking the total stake on offer from 3% to 6%. Retail investors and employees will get to bid for the shares on Wednesday, August 26.

The floor price for the OFS was set at ₹514 per share, a 9.5% discount to Mondat’s closing price of ₹574.15 per share.

As DIPAM Secretary Arunish Chawla told CNBC-TV18, “this is a big OFS because in one leap we’ll come down from 66% to 60%. As you can understand, we are leaving 10% margin for the company to move to meet its capex plans and mobilise capital on the markets. This will help sustain its growth in the future and give forward returns to investors.”

Govt raises ₹55,716 crore via disinvestment to date this FY

The government’s disinvestment proceeds so far in FY27 include:

Company Stake Sold Method Amount Raised
Hindustan copper 6.00% OFS ₹2,982 cr
LIC 6.50% OFS ₹31,515 cr
Coal India 2.00% OFS ₹5,542 cr
NHPC 6.01% OFS ₹4,357 cr
GIC 5.00% OFS ₹3,090 cr
Central Bank of India 8.08% OFS ₹2,266 cr
IRFC 1.75% OFS ₹2,081 cr
Cochin Shipyard 4.58% OFS ₹1,711 cr
NLC India 2.73% OFS ₹1,224 cr
IMPCL 98.11% Strategic disinvestment ₹119 cr
SUUTI remittance Other ₹810 cr
Total ₹55,697 cr

DIPAM confident of meeting ₹80,000 crore target

DIPAM Secretary Arunish Chawla also said the government remains confident of achieving the ₹80,000-crore disinvestment target set for FY27, once the government executes other divestments that are on the anvil.

“We are confident of meeting our targets, and we are confident of meeting our obligations to small investors,” he said, adding, “the timing is optimal as the commodity prices are now are picking up, the metal prices are picking up. And the OFS has been designed in a way that it also leaves some room for a decent room for the investors to make money and gain profits and make money from it. And the forecasts are good. The future is even better. Hindustan Copper has very far-sighted capital investment plans in terms of its mining operations, modernising them and increasing the output.”

Chawla also indicated that the government would continue to assess the timing of more stake sales based on market conditions and the requirements of individual companies.However, Chawla refused to comment on the specifics of future strategic sale transactions, including IDBI Bank, Container Corporation of India, and BEML.

On a specific question on whether the government would look at a further equity dilution in Hindustan Zinc, he ruled out an immediate stake sale saying, “not immediately, not at the moment.”



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