Shares of Hindustan Copper will be in focus on Tuesday as the Union government opens an offer for sale (OFS) to divest a 3% stake in the state-run copper producer. The government has also retained an option to sell an additional 3% in case of oversubscription, which could take the total stake sale to 6%.
The OFS has a floor price of Rs 514 per share, representing a discount of about 10% to Hindustan Copper's last closing price of Rs 573.55. The offer will open first for non-retail investors on Tuesday, August 25, with bidding scheduled from 9:15 am to 3:30 pm.
Allocation for regular bids is expected to be confirmed through contract notes at around 7 pm on August 25. Retail investors will get an opportunity to bid on Wednesday, August 26.
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Settlement and credit of shares for successful bids are expected on or around Thursday, August 27, 2026. This covers bids from non-retail and institutional investors with 100% upfront margin, institutional investors with zero upfront margin, carry-forward bids and retail investors. Allocation for carry-forward bids is expected to be confirmed through contract notes at around 7 pm on August 26.
The OFS has a 10% reservation for retail investors, while 25,000 shares have been set aside for eligible employees. The sale is part of the government's disinvestment programme and is aimed at increasing public shareholding in Hindustan Copper. The company operates under the Ministry of Mines and is India's only vertically integrated copper producer.
Under the base offer, the government will sell 3% equity in Hindustan Copper. If the issue is oversubscribed, the green shoe option allows it to sell another 3%, taking the total stake divested to 6%. An OFS enables promoters of a listed company to sell shares through the stock exchange platform. In this case, the Government of India is the promoter. Retail investors can participate through the reserved portion, while institutional and other non-retail investors participate under the broader OFS framework.
The company reported profit before tax of Rs 472 crore for the quarter ended June 2026, an increase of around 163% from the same period a year earlier. Profit after tax also rose around 163% to Rs 353 crore. Revenue from operations increased 81% to Rs 936 crore from Rs 516 crore in the year-ago period.
Hindustan Copper is also pursuing mine expansion and said it has stepped up monitoring of its expansion projects. The company is targeting ore production capacity of 12.2 million tonnes per annum by 2030. It is also progressing with the reopening of closed mines in Jharkhand, the acquisition of new mines in Chhattisgarh and Madhya Pradesh, and mine exploration in Chile.
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Copper demand has emerged as a long-term theme linked to electric vehicles, renewable energy, power infrastructure and data centres. The shift towards renewable energy and electric mobility, along with AI-led infrastructure and decarbonisation policies, is expected to support copper demand in the coming years.
