The Centre’s second minority stake sale in a public sector unit this fiscal got a thumbs up from investors on Thursday when the offer-for-sale of shares in Hindustan Copper was fully subscribed by non-retail investors. The 5.18 crore shares that were reserved for non-retail investors were subscribed 1.56 times, according to data with the BSE. The offer-for-sale received bids for 8.08 crore shares

The Centre is selling 6.47 crore shares or 7 per cent stake in Hindustan Copper, which is estimated to raise ₹400 crore. The floor price was set at ₹62 a share; most of the bids were received at this price.

Shares of Hindustan Copper fell by 4.97 per cent to close at ₹62.1 on the BSE.

Retail offer today

The retail portion, amounting to 1.29 crore shares of the issue, will open for subscription on Friday. Retail investors will be offered a 5 percent discount on the allotment price.

Following the stake sale, the Centre’s holding in the PSU will be down to 82.95 per cent from its current holding of 89.95 per cent.

SBICAP Securities, ICICI Securities, Edelweiss Securities and Deutsche Equities India are acting as brokers for the stake sale.

Till now, the Centre has received most of its disinvestment proceeds from share buybacks by PSUs. This is the second minority stake sale this fiscal.

Earlier in April, the government had sold 11.36 per cent stake in NHPC and had raised ₹2,700 crore.

The Centre has a target of ₹56,500 crore from disinvestment proceeds this fiscal, of which it plans to raise ₹36,000 crore through minority stake sales.