Hindustan Copper falls as govt offers 10% discount

Mumbai: Analysts are cautious about retail participation in Hindustan Copper's offer for sale (OFS), despite the nearly 10% discount to the stock's closing price, as the recent sharp rally in metal stocks and elevated valuations could limit near-term gains.

While the institutional portion got more bids than the shares set aside for the category on Tuesday-the first day of the offer -analysts said the discount alone may not be sufficient to make the offer attractive to retail investors.The stock fell 7.04% to ₹533.20 on Tuesday.

The floor price for the OFS was set at ₹514 per share, a discount of about 10% to Hindustan Copper's closing price of ₹574.15 on August 24."Investors should not treat the discount as the sole reason to subscribe," said Siddarth Bhamre, head - institutional research at Asit C Mehta.