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
Actress Ameesha Patel has officially responded to reports of a non-bailable warrant issued agains
PM Modi: PM Modi will visit Thailand and Sri Lanka; and will attend BIMSTEC summit in Bangkok
Prime Minister Narendra Modi will visit Thailand and Sri Lanka next month. An official announceme
There will be a tough contest between the two heroines in the Hooghly Lok Sabha seat of West Beng
Bangladesh Unrest: BNP leader shot dead, pre-election violence continues unabated in Bangladesh.
Pre-election political violence continues in Bangladesh following the murder of youth leader Usma
President Donald Trump has been repeatedly making statements about bringing Greenland under US co
Nameplate case in SC The Supreme Court upheld the Yogi government's decision to allow shopkeepers
The Indian women's team achieved a historic victory on Sunday, winning the ODI World Cup for the
The Delhi Traffic Police launched a strict campaign to ensure road safety in the capital during t
After his divorce from Natasha Stankovic, Hardik Pandya's name is being linked with new women eve
What happened during the dispute between Virat Kohli and Anil Kumble, Virender Sehwag revealed
Virender Sehwag, the former explosive opener of the Indian team, has made a big disclosure regard
