Govt to sell up to 3.5% stake in HAL at Rs 2,450 per share through OFS 
Defence Watch

Govt to sell up to 3.5% stake in HAL at Rs 2,450/share through OFS

The government will sell up to a 3.5 percent stake in Hindustan Aeronautics Ltd (HAL) at a floor price of Rs 2,450 per share

Defence Watch Bureau

New Delhi:  The government will sell up to a 3.5 percent stake in Hindustan Aeronautics Ltd (HAL) at a floor price of Rs 2,450 a share. If fully subscribed, it would fetch about Rs 2,800 crore to the exchequer. 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 size of 1.75 percent or 58.51 lakh shares, with an option to retain an over-subscription of an equal quantum.

Oversubscription option represents 3.5% equity shares

"In the event, the oversubscription option is exercised, the equity shares forming part of the base offer size and the oversubscription option will represent 3.5 percent (1,17,03,563) equity shares of the company," HAL said in a regulatory filing.

HAL's proceeds to add to the disinvestment kitty

The government currently holds 75.15 percent shares of HAL, which is a Central Public Sector Enterprise (CPSE) under the Defence Ministry. The proceeds from HAL's OFS would add up to the government's disinvestment kitty for the current fiscal. The government has so far mopped up Rs 31,106.64 crore from disinvestment and share buyback in CPSEs.

The government had last month pegged lower revised estimates of disinvestment revenue estimates for the current fiscal at Rs 50,000 crore, against the budget target of Rs 65,000 crore.

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