The Indian government’s divestment of its Hindustan Copper shares sees record institutional interest, prompting a full green shoe exercise on day one amid robust oversubscription and a price discount, signalling renewed investor confidence despite share price declines.
India’s government has drawn strong institutional demand for its stake sale in Hindustan Copper, prompting it to exercise the full green shoe option on the first day of the offer, according to a statement from the Department for Investment and Public Asset Management. The Offer for Sale was subscribed 3.41 times by non-retail investors, signalling robust interest in the state-backed copper producer at the start of the two-day transaction.
The move lifts the planned divestment to as much as 6% of the company, up from the 3% base issue originally announced. In a regulatory filing cited by Upstox, the government said it would sell an additional 2,90,10,721 shares, matching the size of the base offer. The floor price was set at Rs 514 a share, which is below Tuesday’s market close and represents a discount of more than 10% to recent trading levels.
Reuters-style reporting from Mint said the government is seeking to raise about Rs 2,982 crore if the full 6% stake is sold. The outlet also noted that institutional bids were valued at more than Rs 4,600 crore at an indicative price of Rs 520.35 a share, underlining the depth of demand on the opening day.
Retail investors and eligible employees were due to join the process on Wednesday, with 10% of the offer set aside for retail buyers and up to 25,000 shares reserved for employees. The offer comes against a backdrop of weakness in Hindustan Copper’s share price, with the stock finishing Tuesday down more than 7% on the day.
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