Hindustan Copper share price falls 6% as OFS for non-retail investors kicks off

Hindustan Copper Ltd shares plunged 6 per cent in Tuesday's as the two-day offer for sale (OFS) by the government, the ninth for FY2026-27, kicked off. Non-retail investors can bid today as the government looks to sell up 6 per cent stake at 10 per cent discount. The floor price of the issue was set at Rs 514 apiece.  
  
Following the development, Hindustan Copper shares fell 5.85 per cent to open at Rs 540 apiece. The government held 63,96,13,373 shares or 66.14 per cent stake in Hindustan Copper as of June 30. It intends to sell up to 2,90,10,72 shares, or a 3 per cent stake, as the base size, with an option to retain oversubscription of another 3 per cent, taking the total offer size to 6 per cent of the company's total issued and paid-up equity share capital.

Hindustan Copper shares up 13% in one month

Hindustan Copper has been in news of late, rising 13 per cent in the past one month as shipments to the US in anticipation of a tariff decision has surged, with global inventory at LME and SHFE squeezing further. 
The upswing in copper prices has more to do with trade dislocations and demand tug-of-war between the USA and China, Anand Rathi said.

Rising copper prices lifting stock

Since the middle of May, global copper traders have been consistently withdrawing copper inventories from South Korea, Taiwan and Singapore LME warehouses, which led to drawdown of 47 per cent of inventory, providing support to global prices.

Copper stock outside of the USA has been consistently depleting with the current inventory at 52 per cent, the lowest since January 2026, Anand Rathi said in a recent note.

It said several global miners have reduced their 2026 yearly guidance exacerbated by the Congo's blanket export ban on raw copper concentrates, Indonesia’s Gresik smelter outage and Chile repeatedly trimming its copper output forecast. This is seen providing a support the global prices.

"With several global copper miners trading at or close to their 10-year multiple peaks, the global majors i.e., First Quantum Minerals, Ivanhoe and Southern Copper stand out with sector-leading forward EV/EBITDA multiple of 14.6/13/14.4x.  With copper fundamentals being one of the strongest in non-ferrous metals, we remain confident on HCP’s future growth prospects and maintain BUY rating with DCF-based TP of Rs715," Anand Rathi said on August 18.

Hindustan Copper becomes 9th OFS for FY27

Hindustan Copper will be the government's ninth OFS in FY27 and will join LIC, Cochin Shipyard, IRFC, GIC RE and Coal India Ltd, whose divestments, along with remittance from SUUTI and strategic divestment of Indian Medicines Pharmaceutical Corporation Limited (IMPCL), have fetched Rs 52,716.02 crore to the government in the ongoing financial year.

Hindustan Copper employees: QIP participation  

Hindustan Copper said 25,000 additional shares of the company, equivalent to 0.0026 per cent of the total issued and paid-up equity share capital, will be offered to eligible employees. Eligible employees may apply for equity shares amounting to up to Rs 5,00,000.

Only non-retail investors will be allowed to place their bids on T day, or August 25, 2026. While placing their bids, non-retail investors may indicate their willingness to carry forward their unallotted bids to T+1 day for allocation in the unsubscribed portion of the retail category. The offer will take place during trading hours on a separate window of the stock exchanges on T day, commencing at 9:15 am and closing at 3:30 pm Indian Standard Time on the same date.

Retail bids on Wednesday, August 26

Non-retail investors who place their bids on T day and choose to carry forward their unallotted bids to T+1 day will also be allowed to revise their bids on T+1 day as per the OFS guidelines. The OFS will open first for non-retail investors, followed by retail investors a day later, with the government looking to sell up to a 6 per cent stake in Hindustan Copper at a floor price of Rs 514 per share.