The government has decided to exercise the entire green shoe option in the Hindustan Copper Ltd. offer for sale (OFS), taking the additional stake on offer to 3%, after the institutional portion of the issue was oversubscribed 3.41 times on the first day.
The OFS was launched on Tuesday, with the government offering a base size of 3% of its stake in Hindustan Copper. An additional 3% stake was available under the green shoe option.
The strong response from institutional investors has prompted the government to exercise the full green shoe option, according to the Secretary, Department of Investment and Public Asset Management (DIPAM).
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“Hindustan Copper Ltd. Offer for Sale (OFS) received an enthusiastic response from the institutional investors and was oversubscribed 3.41 times on Day One. The Government has decided to exercise the entire green shoe option,” DIPAM Secretary said in a post on X.
Retail investors and employees will be able to participate in the OFS on Wednesday, August 26, 2026. The government's decision to sell an additional 3% stake comes even as Hindustan Copper shares faced sharp selling pressure after the OFS was launched. Investors appeared to react negatively to the government's decision to pare its holding in the state-owned copper producer.
Hindustan Copper shares closed at Rs 531.40 on the NSE on Tuesday, down Rs 42.75, or 7.45%, from the previous close.
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The sharp decline came despite strong institutional participation in the OFS. The oversubscription indicates robust demand from institutional investors for the shares being offered by the government.
With the exercise of the green shoe option, the government will now sell an additional 3% stake beyond the base offer, subject to the applicable OFS process.
The retail and employee portions of the offer will open for bidding on Wednesday, August 26. The OFS is part of the government's broader stake-sale programme through which it monetises holdings in public sector companies while retaining a portion of its ownership.
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