The government will sell up to 10 per cent stake in Hindustan Copper through an offer for sale (OFS) in a move that would help the exchequer garner about Rs 1,120 crore in divestment receipts.

       The government will sell 5 per cent or 48.3 million shares in the copper miner at Rs 116 apiece on Thursday and Friday. The floor price has been set at a 7 per cent discount to the closing price of the stock on Wednesday. The OFS also includes a greenshoe option to sell an additional 5 per cent shareholding of the public sector undertaking (PSU).

       The entire 10 per cent sale could fetch the government around Rs 1,122 crore at the set floor price, and would bring down the sovereign’s shareholding in the state-owned company to 62.76 per cent.

       The offer would open for institutional investors on Thursday, and a minimum of 25 per cent of offer shares shall be reserved for mutual funds and insurance companies subject to receipt of valid bids at or above the floor price of Rs 116. In case of under subscription, the unsubscribed portion shall be available to other bidders in non-retail category.

       The offer would open on Friday for retail investors. About 5 per cent of the offer size would be reserved for employees of the company, and eligible employees can bid apply for shares amounting to Rs 5 lakh.

       This is the third time the government is offloading its stake in a PSU through an OFS in the current financial year--the first one and the second being NMDC and HUDCO--as it looks to meet its Rs 1.75 trillion divestment target. So far, the government has mopped up Rs 8,369 crore through OFS of NMDC, HUDCO and selling stake in Axis Bank in the current fiscal.