Key Points of Government to Sell Stake in HAL through OFS:
- The Indian government plans to sell up to 3.5% stake in Hindustan Aeronautics Ltd (HAL) through an offer for sale (OFS).
- The stake sale is valued at Rs 2,867 crore, based on a floor price of Rs 2,450 per share.
- The government will sell 1.75% of its equity shares on March 23 and March 24 for non-retail investors.
- An additional 1.75% stake will be sold “in event the oversubscription option is exercised.”
- In 2020, the government had sold 15% of its equity stake in HAL at a 15% discount.
- HAL is a state-owned aerospace and defence company headquartered in Bangalore, established on December 23, 1940.
- With 89.97% stake, the government is the major shareholder of HAL, which was listed in March 2018 and has a significant presence in India’s defence sector.
Details of Government to Sell Stake in HAL through OFS:
Indian Government Plans to Sell 3.5% Stake in Hindustan Aeronautics Ltd (HAL) via Offer for Sale (OFS)
Based on a floor price of Rs 2,450 per share, the stake sale is expected to be valued at Rs 2,867 crore.
According to an exchange filing on March 22, the Indian government is planning to sell up to 3.5% stake in aerospace and defence company Hindustan Aeronautics Ltd (HAL) through an offer for sale (OFS). The stake sale is valued at Rs 2,867 crore, with a floor price of Rs 2,450 apiece. The shares of HAL closed 1.02% lower at Rs 2,623 apiece on BSE.
As per the regulatory filing, the government will sell 1.75% of its equity shares on March 23 and March 24 for non-retail investors, and an additional 1.75% stake “in event the oversubscription option is exercised.” In 2020, the government had sold 15% of its equity stake in the company at Rs 1,001 per share to raise about Rs 5,000 crore via OFS, at a 15% discount.
HAL is a state-owned aerospace and defence company headquartered in Bangalore, established on December 23, 1940. With 89.97% stake, the government is the major shareholder of HAL, which was listed in March 2018. As one of the oldest and largest aerospace and defence manufacturers in the world, HAL has a significant presence in India’s defence sector.
About HAL:
Hindustan Aeronautics Limited (HAL) is a state-owned Indian aerospace and defense company headquartered in Bangalore, under the Ministry of Defence of the Government of India. Established on December 23, 1940, HAL is among the largest and most established aerospace and defense manufacturers globally.
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