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
'Iran cannot have nuclear weapons', G7 supports Israel; Iran held responsible for the attacks
The G-7, a group of the world's seven most powerful countries, has expressed its support for Isra
Chinese President Xi Jinping addressed the Shanghai Cooperation Organization (SCO) meeting being
After heavy rain on Wednesday night in Delhi and NCR, light rain continued on Thursday as well. E
While Bollywood's much-awaited film 'Housefull 5' is earning great money at the box office, on th
Israel has officially declared war after the attack by terrorist organization Hamas. After the ma
Ponniyin Selvan 2 Trailer: PS 2 trailer launch in presence of Aishwarya Rai and Mani Ratnam
Ponniyin Selvan 2 Trailer: The trailer of Aishwarya Rai Bachchan's much-awaited film PS2 has been
OMG 2 Trailer Twitter Reaction: People liked the trailer of Akshay Kumar's film, CBFC got ripped off
OMG, 2 Trailer Twitter Reaction: Akshay Kumar and Pankaj Tripathi's film Oh My God 2 is very clos
Shadab Jakati, who went viral on social media with 'How much are 10 rupee biscuits', has recently
Gold and silver prices remained volatile on Monday, July 6, as global economic uncertainty and sp
The case of the suicide of AI engineer Atul Subhash in Bengaluru is now gaining momentum across t
