Shares of state-run Hindustan Copper Ltd nosedived in early trade today ahead of the government’s OFS (offer for sale) which opens today to sell 4-8% of its equity stake at a discount to Tuesday’s closing price. Hindustan Copper shares fell as much as 7.22% to Rs 65.55 on BSE on Wednesday and remained under pressure.

Earlier yesterday, the government said it will sell 4% from its equity stake in Hindustan Copper via an Offer for Sale of shares on Wednesday and Thursday, raising Rs 240 crore, with a greenshoe option to offer another 4% stake in the sale, taking the total potential fund raising to Rs 480 crore. The government holds 82.88% equity stake in Hindustan Copper, and if it exercises the greenshoe option as well to dilute entire 8% stake, then it will meet the SEBI mandate on minimum public shareholding requirement.

The government will sell over 3.7 crore shares in the OFS at Rs 64.75 per share, at a discount of over 8% to the Friday’s closing price of Rs 70.65. The issue will open for the institutional investors on Wednesday, and for retail investors on Thursday.

Earlier last year too, the government raised Rs 400 crore from stake sale in Hindustan Copper, by selling 7% stake or over 6.47 crore shares at a floor price of Rs 62 per share. Just like last year, this year too, the government will give discount to the retail investors on the offer price.

Indian government has undertaken strategic sale of stake in profitable PSUs to help boost up state revenue and bridge the fiscal deficit. In the last financial year 2016-17, the government raised Rs 46,247 crore through disinvestment, the highest ever amount earned by sale of equity stake in PSUs, though falling short of the original target, as expected.

This fiscal, the government seeks to sell 10% equity stake each in three major state-run railway companies IRCTC, Ircon and IRFC via IPOs. The Union Cabinet has also approved listing of five state-run general insurance companies, which is likely to begin only in the next financial year with the first listing possible by September-October. The government is also reportedly looking at selling 10% equity stakes each in the capital goods major Bharat Heavy Electricals Ltd and energy company Oil India Ltd.