Hindustan Copper slips 5% as Rs 400 cr OFS kicks off

NEW DELHI: Shares of Hindustan Copper slumped 5 per cent on Thursday after the government kickstarted a two-day offer for sale ( OFS) for 7 per cent of its stake in the state-run firm.

The stock declined as the floor price was set 2 per cent lower than Wednesday’s closing price of Rs 65.35 on BSE. Selling on the counter intensified after fears of a full-fledged war with Pakistan following a surgical strike conducted by Indian Army gained ground. 

The scrip closed at Rs 62.10 on BSE, down 4.97 per cent.

The company on Thursday said it would offload up to an aggregate of 6,47,65,260 equity shares of face value Rs 5 each. The OFS window will remain open for two days.

On Thursday, only non-retail Investors were allowed to bid for the Rs 400 crore issue. By 10.12 am, the investor category had bid for 3,226 shares on NSE. Retail investors can bid for Hindustan Copper shares on Friday.

"Retail investors will be allocated shares at the discounted price i.e. at a 5 per cent discount to the cut-off price in accordance with the Sebi OFS circular," the company said.

The government held 89.95 per cent stake in Hindustan Copper as of June 30.