India's Hindustan Copper stake sale nears ₹3,000 crore as demand runs 3.4x
What's the deal? The Indian government exercised an additional 3% option in its Hindustan CopperDealroom has a profile for this one. Try Dealroom → stake sale after institutional bids reached 3.41 times the shares offered, potentially taking the total to nearly ₹3,000 crore. It had initially planned to sell 3% through an Offer for Sale (OFS).
Why now? The sale supports the government's FY27 disinvestment target of ₹80,000 crore. It has reportedly raised around ₹52,700 crore so far this financial year.
What's driving demand? Hindustan Copper's Q1 FY27 results likely fuelled investor interest. Net profit rose 163% year-on-year to ₹353 crore, while revenue climbed 81% to ₹936 crore.
A misnomer worth noting: The additional 3% has been described as a "green shoe option," but that term is not technically accurate here. A genuine green shoe is an IPO mechanism to stabilise a newly listed company's share price.
Under Securities and Exchange Board of India (SEBI) rules, a company can over-allot shares — generally up to 15% of the issue — with a stabilising agent borrowing shares and buying them back if the stock falls. The mechanism can run for up to 30 days.
Hindustan Copper has been listed for decades. There is no IPO, no stabilising agent, and no 30-day price-support arrangement — the government is simply selling more of its existing stake because demand was strong.
The signal: When "green shoe" appears in a share sale, investors should check whether it means the formal IPO stabilisation tool or, as here, an extra allocation triggered by heavy demand — a distinction that separates volatility management from a well-timed disposal.
Read more: newskarnataka.com
Image credit: benketaro
