Hindustan Copper plunges as govt set OFS price disappoints

MUMBAI: Shares of Hindustan Copper plunged in trade today reacting sharply to the offer for sale (OFS) price of Rs 155 per share set by the government, which is at a discount of 42 per cent to yesterday’s closing price on the BSE.

“Firstly, the stock is highly illiquid hence sharp price fluctuations can be expected. Secondly, for investors it makes more sense to exit the stock at higher price and bid at lower price in the auction,” said an analyst tracking the sector.

Hindustan Copper's stock price soared 11.3 per cent on Thursday in anticipation of higher OFS price.

At this floor price, the government will raise a minimum of Rs 574 crore from the copper firm's stake sale through the auction route.

The government owns 99.6 per cent in the company and intends to sell another 5.6 per cent stake in the firm early next year.

In FY12, the company had reported its best ever net profit at Rs 323.44 crore, while its net sales stood at Rs 1,489.61 crore


At 09:55 a.m.; the stock was at Rs 233, down 12.50 per cent, on the BSE. It touched a high of Rs 248.70 and a low of Rs 217.90 in early trade.