The OFS will have a floor price of ₹514 per share, representing a 9.5% discount to Hindustan Copper’s Monday closing price of ₹567.90.
Retail investors will be entitled to 10% of the offer, while an additional 25,000 shares have been reserved for eligible employees.
CNBC-TV18 had reported earlier on Monday that the government was likely to launch an OFS in Hindustan Copper, with the issue expected to comprise a 3% base offer and an additional 3% green-shoe option.
At the ₹514 floor price, the government is looking to raise nearly ₹3,000 crore if the full 6% stake on offer, including the green-shoe option, is sold.
The government’s stake in Hindustan Copper is currently around 66%. If the full 6% stake is sold through the OFS, its holding will come down to around 60%.
The stake sale comes after a sharp improvement in Hindustan Copper’s financial performance in the June quarter, with the company reporting more than a two-fold rise in net profit amid strong revenue and operating profit growth.
Q1 profit more than doubles
Hindustan Copper reported a net profit of ₹353 crore for the June quarter, compared with ₹134 crore in the year-ago period. Revenue rose 81.4% year-on-year to ₹936.5 crore from ₹516.4 crore.
EBITDA, or earnings before interest, tax, depreciation and amortisation, more than doubled to ₹507.5 crore from ₹212.3 crore a year earlier. The EBITDA margin expanded to 54% from 41%.
The strong quarterly performance came amid a rally in global copper prices, which had crossed the $14,000-per-tonne mark last week, reaching their highest intraday level since late January.
Global copper prices had also recorded six consecutive weeks of gains, supported by tight supplies and easing concerns over a US interest-rate hike following weaker-than-expected jobs data.
Shares of Hindustan Copper ended 0.84% lower at ₹567.90 on Monday. The stock has gained about 9% so far this year and more than 140% over the past 12 months.
