The OFS or offer for sale from Hindustan Copper was completed and the issue was oversubscribed 1.18 times. Bids received at the floor price have been considered for allotment which means that once again the OFS has been subscribed by LIC and PSU banks. What is the great idea of divestment if this is the intention?

I believe the manner of dilution to comply with the minimum public shareholding norms of 25% should be challenged with the regulator as the dilution by the government to LIC and PSU banks should be construed as “PERSONS ACTING IN CONCERT”. I believe a PIL against this would succeed in court and would benefit the stock market at large.

The floor price was Rs 70 and the market price closed yesterday at Rs 70.40. The stock fell from Rs72.65 on the previous day, a loss of Rs 2.25 or 3.10%. Post the close of this offer there is every likelihood that the share may fall further. One should simply avoid dabbling in this stock for the time being.