Business News | Government Offers 3% Stake in Hindustan Copper Through OFS, Floor Price at Rs 514/share
Get latest articles and stories on Business at LatestLY. The Government of India has proposed to sell a 3 per cent stake in Hindustan Copper Limited (HCL) through an Offer for Sale (OFS), with the possibility of increasing the sale by another 3 per cent if the issue is oversubscribed, according to a social media post by the DIPAM Secretary.
New Delhi [India], August 24 (ANI): The Government of India has proposed to sell a 3 per cent stake in Hindustan Copper Limited (HCL) through an Offer for Sale (OFS), with the possibility of increasing the sale by another 3 per cent if the issue is oversubscribed, according to a social media post by the DIPAM Secretary.
The government has fixed a floor price of Rs 514 per share for the OFS. At this price, the offer is Rs 53 below Hindustan Copper's closing price of Rs 567 per share on the National Stock Exchange on Friday.
Also Read | SanDisk Layoffs: Semiconductor and Data Storage Giant Lays Off Employees Despite AI Boom, Say Reports.
The floor price is around 9.3 per cent lower than the Friday closing price.
DIPAM Secretary stated, "Government of India offers to divest 3 per cent equity in Hindustan Copper Limited (HCL) through an Offer for Sale (OFS), with an option to divest an additional 3 per cent (green shoe) in case of oversubscription".
Of the shares being offered, 10 per cent will be set aside for retail investors. The government has also earmarked an additional 25,000 shares for eligible employees.
The initial offer covers a 3 per cent equity stake in Hindustan Copper. However, the government has retained a green-shoe option that could allow it to sell a further 3 per cent stake if the OFS attracts demand beyond the shares available under the initial offer.
In an OFS, a green-shoe option refers to the provision allowing the seller to offer additional shares when the initial offer is oversubscribed. In the case of Hindustan Copper, the additional portion could take the total stake offered from the initial 3 per cent to another 3 per cent, depending on the response to the offer.
The floor price of Rs 514 per share compares with the Rs 567 closing price recorded by Hindustan Copper on the NSE on Friday. This means the government has set the minimum offer price below the company's latest closing market price.
The proposed transaction will provide separate participation provisions for retail investors and eligible employees. Retail investors will have a 10 per cent reservation in the offer, while 25,000 additional shares have been reserved for eligible employees. (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)