Hind Copper OFS - On Similar Lines of SAIL

By Research Desk
about 3 years ago

Hind Copper will see Offer For Sale (OFS) by Promoter, being Govt of India, to sell up to 4.84 cr shares, being 5%, with an option to sell additional 4.84 cr, being 5%, with a floor price of Rs. 116 per share. In total, 10% equity, being 9.68 cr shares will be sold, bringing down Govt stake to 62.76%. This OFS may keep share price trade in a narrow range for 1 month, but after that share has seen huge upside potential.

It reminds us of SAIL OFS seen in middle of January 21, of 10% equity, made at Rs. 66, while Floor price was at Rs. 64.  Govt brought down its stake from 75% to 65%. Share of SAIL traded dull for 1 month, and at one point, fell below Rs.60 as well for a brief period , but rose to Rs. 140 plus, in middle of May, having more than doubled in less tha 4 months. OFS saw retail shareholders rising in SAIL from 407 lakh as at 31-12-20 to 7.02 lakh as at 30-6-21, with share number rising from 15.09 cr to 23.67 cr shares. With this, on acquisition of additional 8.58 cr shares by about 3 lakh shareholders, they made a gain of Rs. 550 cr. Even MF & FIIs acquired shares in SAIL via OFGS, thus seeing huge interests and wealth building. Govt in the interim, seen to be first rewarding the retail shareholders, while similar move was seen taken in case of BPCL as well.

LIC is holding 10.29 cr shares, being 10.64% stake in Hind Copper, of which, 84 lakh shares were acquired in QIP, in April 21, at Rs. 119.60 per share. Hence, even LIC may monetize is 11% stake in Hind Copper, in the next 3-4 months, ahead of its IPO, maybe at Rs. 200 per share.

Hence, retail investors are advised to acquire shares in this OFS, for which bids are scheduled tomorrow, 17th Sep, and advised to bid at Rs. 124 per share or near the market price.

Probably this is the last chance to have ownership of this Multibagger at around Rs. 120 per share. To avoid hassle of OFS, one can buy from the secondary market now.

This is not a Buy or Sell recommendation, while stock recommendations are provided exclusively to our paid members in the Member Zone.

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