Latest News | Govt to Sell Up to 3.5 Pc in HAL at Rs 2,450 a Share Through OFS

New Delhi, Mar 22 (PTI) The government will sell up to 3.5 per cent stake in Hindustan Aeronautics Ltd (HAL) at a floor price of Rs 2,450 a share, if fully subscribed, would fetch about Rs 2,800 crore to the exchequer.

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The two-day Offer For Sale (OFS) will open for institutional investors on Thursday and for retail buyers on Friday.

The OFS comprises of base issue size of 1.75 per cent or 58.51 lakh shares, with an option to retain over-subscription of an equal quantum.

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"In the event the oversubscription option is exercised, the equity shares forming part of the base offer size and the oversubscription option will represent 3.50 per cent (1,17,03,563) equity shares of the company," HAL said in a regulatory filing.

At the floor price of Rs 2,450 apiece, the sale of 3.5 per cent stake would fetch about Rs 2,800 crore to the exchequer.

The floor price is at a discount of around 6.7 per cent over the closing share price of HAL on the BSE.

Shares of HAL closed 0.93 per cent down at Rs 2,625.20 each on the BSE.

The government currently holds 75.15 per cent in HAL, which is a Central Public Sector Enterprises (CPSE) under the Defence Ministry.

The proceeds from HAL 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 a 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.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)