The government will sell up to 15 percent stake in Hindustan Aeronautics (HAL) via offer for sale (OFS). The floor price for the offer has been fixed at Rs 1,001 per equity share of the company.
While the government proposes to sell 3,34,38,750 equity shares representing 10 percent paid-up share capital of the company (base offer size), there is an option to sell an additional 5 percent stake or 1,67,19,375 equity shares (oversubscription option).
"...in event the Oversubscription Option is exercised, the equity shares forming part of the Base Offer Size and the Oversubscription Option will represent 15% (50,158,125) equity shares of the Company," it said in an exchange filing.
Currently, the government holds an 89.97 percent stake in HAL.
The stake sale will take place on a separate window of the Stock Exchanges on August 27 and August 28, 2020. Non-retail investors can place their bids only on August 27, while retail investors can do so only on August 28.
While placing their bids on August 27, non-retail investors can also indicate their willingness to carry forward their unallotted bids to the next day for allocation to them in the unsubscribed portion of the retail category. Such investors will be allowed to revise their bids upward on August 28, as per the OFS Guidelines.
IDBI Capital Markets & Securities, SBICAP Securities and YES Securities will act as the seller's brokers for the offer.
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