- Shares rebounded 4.8% after dropping over 7%, as non-retail institutions oversubscribed the 6% government stake sale by 3.41 times
- Record LME copper prices and the company's unique position as India's sole primary producer drove a 14%+ monthly rally
- While high LME copper demand supports long-term momentum, profit-taking from newly allocated shares could keep the stock temporarily range-bound
Hindustan Copper Limited (NSE: HINDCOPPER) has experienced significant price fluctuations in recent days. After the government announced an Offer for Sale (OFS), the stock dropped over 7% intraday but bounced back quickly on the same trading day.
Investor interest really picked up once retail bidding began. Short-term traders might chase immediate price movements, but understanding why it gained roughly 14% in a month, and how the OFS could impact it helps investors get a clearer picture.
The OFS Story and Its Impact
The stock fell sharply on August 25th, the day the Indian government announced the stake. It closed between ₹531 and ₹533, down about 7%, as the market processed news of more shares coming available.
The OFS had the government selling an initial 3% stake. They also had a greenshoe option to sell another 3%, bringing the total potential sale to 6%. The base price was set at ₹514 per share, roughly 10% below the prior day’s closing price of about ₹574.
Non-retail investors had strong demand on the first day of bidding, oversubscribing their portion by 3.41 times. They wanted 8.91 crore shares, far exceeding the 2.61 crore shares allocated. Because of this strong interest, the government decided to use the full greenshoe option.
Retail investors and eligible employees got their chance to bid on August 26th. The retail portion received 10% of the base offer, along with a small extra allocation for employees. Shares were due to settle on August 27th.
What Drove the Over 14% Rise in the Last Month?
Hindustan Copper’s share price jumped over 14% last month, and most of that gain came from global copper prices, which are now near record highs. Three-month copper on the London Metal Exchange (LME) has been trading around $14,200-$14,300 per tonne, with Comex prices also reaching new highs.
A few things are driving this rally. They includemetal shipments going to the United States ahead of potential tariffs, lower inventories on some exchanges, and consistent demand from areas like energy transition, electric vehicles, data centers, and infrastructure projects.
The company’s strong financial results in the first quarter of FY27 played a role too. Revenue from operations rose about 81% year-on-year, reaching ₹936.50 crore. Net profit jumped roughly 162-163%, totaling around ₹352-353 crore.
Investors are still very interested, drawn by the company’s plans to expand capacity and its unique position as India’s only publicly traded pure-play copper producer. Analysts also point to the company’s multi-year growth potential from mine expansions and a stable balance sheet as reasons for its stock’s recent climb.
Near-Term Momentum After the OFS
Once the allocation process wraps up, the market will see an additional 6% of its equity. These new shares might lead to some market volatility. The 7% price drop on the day the offer was announced largely reflected the discount from the previous closing price.
In the near term, the market might see downward pressure if large investors who bought shares decide to offload them, or if the broader market sentiment turns negative. But if copper prices hold strong and the company’s performance keeps getting better, that could help the market bounce back.
The government’s offer for sale includes a 3% base stake, plus a 3% greenshoe option, making it 6% overall. The floor price is ₹514, with reservations set aside for retail investors and employees.
Hindustan Copper’s stock jumped over 14% last month. This gain came largely thanks to global copper prices hitting record or near-record highs. The company also saw strong Q1 FY27 earnings, which featured 81% revenue growth. Its pure focus on copper made it an attractive choice for investors too.
The market will likely see some short-term volatility as it absorbs the new supply. But strong copper prices and solid institutional demand should help the stock recover once the allotment process finishes.