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.
The more important consideration is whether the company's current valuation leaves enough upside after factoring in the recent rally in metal stocks.
After the sharp rally in metal stocks, the discount may not be sufficiently attractive for retail investors, particularly when assessed against the risk-adjusted return potential from current levels. 133526902On August 24, the government announced an OFS in Hindustan Copper, with the issue opening for non-retail investors on Tuesday.The retail tranche of the two-day share sale will open for bids on Wednesday after the non-retail portion, including for institutions, was subscribed more than three times on Tuesday, the first day of the issue.
