Why Hindustan Copper Shares Crashed Over 7% (25 Aug): What the Government’s 6% Stake Sale Means for Investors

Hindustan Copper shares fell more than 7% on August 25, 2026, after the Government of India announced an Offer for Sale (OFS) to divest up to 6% stake in the state-run copper producer. The OFS has an initial 3% stake on offer, along with an additional 3% green-shoe option in case of oversubscription.

The government has set the OFS floor price at ₹514 per share, representing a discount of around 10.5% to Hindustan Copper's previous closing price of ₹574.15. The discounted floor price triggered selling pressure as investors reassessed the stock's near-term price expectations.

Hindustan Copper shares fall over 7%

Hindustan Copper shares declined sharply in opening trade, with the stock falling to around ₹530.95, down ₹43.20 or 7.52% at 12:30 PM. The stock later traded around ₹533.60, keeping the pressure on the counter during the session.

The sharp decline came immediately after the government announced the stake sale at a price substantially below the previous market close. When an OFS floor price is set at a discount, investors can adjust their bids and expectations toward that level, increasing short-term selling pressure.

Particular	Details
Previous close	₹574.15
OFS floor price	₹514
Intraday price	₹530.95
Initial stake offered	3%
Green-shoe option	3%
Maximum stake sale	6%
OFS retail reservation	10%

Why is Hindustan Copper stock falling?

The key trigger for the decline is the government's decision to sell up to 6% of its holding through an OFS. The initial offering covers 3% of the company's equity, while another 3% can be sold if the issue receives sufficient demand.

The ₹514 floor price is around 10.5% below Hindustan Copper's August 24 closing price. This discount creates a reference point for investors participating in the OFS and has contributed to selling pressure in the secondary market.

Hindustan Copper OFS details

The OFS will be conducted over two days. Non-retail investors will bid on August 25, while retail investors and eligible employees can participate on August 26. Non-retail investors can also carry forward their unallotted bids from the first day.

The government has reserved 10% of the offer for retail investors, along with 25,000 shares for eligible employees. Emkay Global Financial Services, DAM Capital Advisors and IDBI Capital Markets & Securities are acting as brokers, with DAM Capital serving as the settlement broker.

Hindustan Copper OFS settlement date

Settlement for bids received across both days is scheduled for August 27, following a clearing holiday on August 26. NSE is the designated exchange, while NSE Clearing will act as the clearing corporation.

The stake sale is part of the government's broader PSU disinvestment programme. According to the information provided, the government has raised ₹52,716 crore through PSU disinvestment during the current fiscal year.

Hindustan Copper stock outlook

The immediate outlook for Hindustan Copper shares is likely to remain influenced by the OFS floor price, bidding demand and the number of shares ultimately sold by the government. The gap between the market price and the ₹514 floor price will remain an important factor for investors during the offering.

Investors should also track the OFS subscription, post-sale shareholding and broader copper-market conditions. While the stake sale has created short-term pressure, the longer-term direction of the stock will depend on business performance, commodity prices, government ownership changes and overall investor sentiment.