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
Former captain Kapil Dev has lashed out at the Indian team for the humiliating defeat in the seco
Due to heavy rains, India's financial capital Mumbai came to a standstill on Saturday. It has bee
Veteran Bollywood actor Akshaye Khanna has been consistently making headlines lately, thanks to h
For the first time in the ongoing IPL season, the Lucknow Super Giants’ pace battery appear
IND vs ENG: 'I forgot what my position is...', why did KL Rahul say this after his century?
The Indian team performed brilliantly on the fourth day of the Headingley Test. Especially the pa
Today is a big day for Delhi Chief Minister Arvind Kejriwal, who is facing trial as the main accu
Home Minister Amit Shah said on Monday that his ministry's tableau in the Republic Day parade sho
The interim government of Bangladesh has demanded the extradition of former PM Sheikh Hasina from
CBI raids AAP leader Durgesh Pathak's house, Atishi says- We are not afraid of BJP's threats
The CBI team raided the house of Aam Aadmi Party leader and Gujarat co-in-charge Durgesh Pathak o
Shiv Sena (Uddhav Balasaheb Thackeray) leader and Rajya Sabha MP Sanjay Raut has made a big claim
