New Delhi [India], August 26 (ANI): The Offer for Sale (OFS) of Hindustan Copper Ltd closed successfully on Wednesday with retail investors giving an enthusiastic response to the issue, according to a social media post by the Department of Investment and Public Asset Management (DIPAM) Secretary.

The Government has decided to exercise its entire greenshoe option after the OFS was oversubscribed on both days of the offer. The DIPAM Secretary thanked investors for their participation and for reposing their faith in the Government.

The latest development follows a strong response from institutional investors on the first day of the OFS. On Tuesday, the DIPAM Secretary had said that the institutional portion of the offer was oversubscribed 3.41 times on Day One. Following the strong demand, the Government decided to exercise the entire greenshoe option.

The OFS was part of the Government's plan to divest its stake in Hindustan Copper. The Government had offered to sell 3 per cent equity in the company through the OFS, with an option to sell an additional 3 per cent under the greenshoe option in case of oversubscription.

The OFS had a floor price of Rs 514 per share. Of the offer, 10 per cent was reserved for retail investors, while 25,000 shares were reserved for eligible employees. Following the institutional bidding on Tuesday, retail investors and employees were allowed to participate in the offer on Wednesday.

The strong response to the OFS came even as Hindustan Copper's shares witnessed volatility during the offer period. The stock had closed at Rs 531.40 per share on the NSE on Tuesday, declining more than 7 per cent.

On Wednesday, however, Hindustan Copper shares recovered and closed at Rs 554.90 per share on the National Stock Exchange (NSE).

The Government's decision to exercise the full greenshoe option means that it will proceed with the additional stake sale allowed under the OFS after the issue received sufficient demand from investors.

The latest development marks the completion of the Government's stake sale process in Hindustan Copper, following the two-day bidding process and strong participation across investor categories.

An Offer for Sale (OFS) is a mechanism through which promoters of a listed company, including the government in the case of public sector enterprises, sell part of their shareholding through the stock exchange. The route enables promoters to reduce their stake in a transparent manner while providing institutional and retail investors an opportunity to participate in the share sale.

The green shoe option is a provision that allows the seller to retain the flexibility to sell additional shares over and above the base issue size if the offer receives strong demand from investors. (ANI)