Hindustan Copper share price fell over 2% in early trade on Thursday, after a strong rally in the previous session. The PSU stock declined as much as 2.59% to Rs 542.10 apiece on the BSE.
The state-run Hindustan Copper closed its Offer for Sale (OFS) on August 26, with the issue receiving a strong response from retail investors.
The government has realised nearly Rs 3,000 crore from share sale of Hindustan Copper, with the issue getting oversubscribed on both days, while the Government decided to exercise its entire greenshoe option.
Hindustan Copper OFS comprised of 5.8 crore shares with base offer size 29,01,073 shares and oversubscription option of 29,01,073 shares.
Data available on the exchanges showed that against 5,802,146 shares for sale, 41,566,840 crore (provisional) bids came at the end of last day of the OFS.
The government proposed to sell a little over 5.8 crore shares, or up to 6% (including 3% greenshoe option) stake in Hindustan Copper, through a two-day OFS at a floor price of Rs 514 apiece.
Hindustan Copper floor price was set at a 10.38% discount over Monday's closing share price.
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In a separate development, the stock exchanges, BSE and NSE have imposed fine of Rs 14,43,140 on Hindustan Copper for non-compliance with requirements pertaining to composition of the Board and constitution of Committees.
“Hindustan Copper Ltd, being a Government Company, the power of appointment of directors on its Board as per its Articles of Association is vested with President of India, acting through the Ministry of Mines Government of India. The Company has written to the Ministry of Mines, Government of India for appointment of required number of directors on the Board of HCL and the matter is under consideration,” the company said in a regulatory filing on August 26.
Consequent upon appointment of required number of directors on the Board of Hindustan Copper, the company will seek waiver of fines from both BSE and NSE. Hence, there is no impact on financial, operation or other activities of the Company, it added.
Technical Outlook
Hindustan Copper share price, on the weekly chart, is moving within a symmetrical triangle-like pattern and is currently trading near the upper end of the pattern, close to its resistance, noted Sudeep Shah - Head of Technical and Derivatives Research at SBI Securities.
“The DI+ continues to remain above the DI- on the ADX indicator, indicating that the bulls remain firmly in control. Meanwhile, the MACD histogram bars are shrinking on the weekly timeframe, while the MACD line is on the verge of crossing above the signal line, indicating a potential buildup of bullish momentum,” said Shah.
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According to him, the Rs 565 – Rs 570 zone is likely to act as the immediate resistance, and a decisive breakout above Rs 570 could lead to a continuation of the upmove towards Rs 585, followed by Rs 600 in the short term.
On the downside, he said that the 50-day EMA zone of Rs 530 – Rs 525 is likely to act as an immediate support.
Hindustan Copper Share Price Performance
hindustan copper
Photo Credit: NDTV Profit
At 9:40 AM, Hindustan Copper share price was trading 2.16% lower at Rs 544.55 apiece on the BSE.
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