HAL Stake Sale: The government will sell up to a 3.5 percent stake in Hindustan Aeronautics Limited (HAL) at a floor price of Rs 2,450 per share. The two-day offer for sale (OFS) will open for institutional investors on Thursday and for retail buyers on Friday.
The OFS comprises a base issue of 1.75 percent or 58.51 lakh shares. This also includes the option of retaining the over-subscription.
The government will sell a stake in HAL
HAL has said in a regulatory filing that the oversubscription option is being exercised in this sale. The Equity Shares forming part of the Base Offer Size and oversubscription option will represent 3.50 percent (1,17,03,563) Equity Shares of the Company.
what is the deal price?
The sale of a 3.5 percent stake at the floor price of Rs 2,450 per share will fetch the exchequer around Rs 2,800 crore. The floor price is at a discount of approximately 6.7 percent to the closing share price of HAL on BSE. Shares of HAL on Wednesday closed at Rs 2,625.20, down 0.93 percent, on the BSE.
The government proposes to sell 1.75% of its equity shares of the face value of Rs 10 each to non-retail investors. Apart from this, the option of selling 1.75% more stake is also open in case the issue is oversubscribed, that is, a total of 3.5% stake can be sold in this way.
HAL is a defense company
The government currently holds a 75.15 percent stake in HAL, a Central Public Sector Enterprise (CPSE) under the Ministry of Defence. The proceeds from the HAL OFS will be added to the disinvestment fund of the government for the current financial year.
The government has so far raised Rs 31,106.64 crore through disinvestment and share buyback in CPSEs. The government had last monthly revised its estimate of disinvestment revenue for the current fiscal at Rs 50,000 crore against the budgeted target of Rs 65,000 crore.
Also Read: Signature Bank : After SVB, now Signature Bank is also closed, and FDIC takes control
Preparations for action against Pakistan? NSA Ajit Doval met PM Modi for the second time in 24 hours
Tensions between India and Pakistan continue after the attack in Pahalgam, Jammu and Kashmir. Mea
Ind vs Pak: Setback for PCB, ICC rejects demand to remove match referee; What will Pakistan do now?
The ICC has formally rejected the demand of the Pakistan Cricket Board (PCB) regarding the 'no ha
Love Jihad in Uttarkashi: The cases of Love Jihad have raised concern in Uttarakhand. Chief Minis
The excavation was carried out on the second day on Sunday in search of the 150-year-old step wel
Indian-American singer and entrepreneur Chandrika Tandon has won the Grammy Award in the Best New
If the strong contestants of the entry into the semi-finals, New Zealand and South Africa World C
The much-awaited film Rocky Aur Rani Ki Prem Kahani, starring Ranveer Singh and Alia Bhatt, which
The Indian team will start its World Cup campaign on Wednesday. India will face Ireland at the Na
After midnight, these melodious sounds are continuously echoing in the streets of Ayodhya in the
Qatar court has sentenced eight former Indian Navy employees to death on October 27. India is ext
