Hindustan Copper shares fall 3%, multibagger stock drops 6% in 3 days as OFS concludes. What lies ahead?

Shares of Hindustan Copper dropped around 3% on Thursday, with the stock overall losing around 6% in three sessions as the government concluded its offer for sale (OFS) in the metals major. The stock fell to Rs 541.20 apiece on Thursday. The company announced on Monday that the government plans to sell a 3% equity stake as part of the base offer, with an additional 3% available as a green shoe option. The floor price was Rs 514 apiece, making the total OFS size nearly Rs 2,982 crore. The OFS opened for non-retail investors on August 25 and for retail investors on August 26, both days oversubscribed. This marks another successful stake sale by the government in a public sector undertaking (PSU) after recent OFSs in LIC, Coal India, NHPC, and NLC India. Hindustan Copper also faced fines of Rs 14.43 lakh each from BSE and NSE for non-compliance with board composition and committee constitution requirements. The company stated it is addressing this with the Ministry of Mines, seeking a waiver after appointing the required directors. Hindustan Copper’s share price has seen fluctuations: a 3% drop in a week, a 12% gain in a month, and a 4% increase in 2026. Over the past year, it delivered a 134% return, with 274% in three years and 368% in five years. Analyst Vaqarjaved Khan from Angel One advised against chasing the OFS discount, emphasizing long-term copper investment. Hindustan Copper’s Q1 profit surged 163% year-over-year to Rs 353 crore, with margins near 54%. The company aims to increase capacity to 12.2 MTPA by FY30, with copper production playing a key role in this growth.