HAL shares fall 13% after government mulls selling stake

Currently, the government holds an 89.97 percent stake in HAL.

August 27, 2020 / 02:37 PM IST
 
 
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Hindustan Aeronautics (HAL) share price tumbled over 13 percent intraday on August 27 after reports made rounds that the government will sell up to 15 percent stake in the company via offer for sale (OFS).

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 the event, the oversubscription option is exercised, the equity shares forming part of the base offer size and the oversubscription option will represent 15 percent (50,158,125) equity shares of the company," it said in an exchange filing.

The floor price for the offer has been fixed at Rs 1,001 per equity share of the company.

The stock price has seen a steady fall in the last seven days and was trading at Rs 1,017.45, down Rs 160.30, or 13.61 percent. It has touched an intraday high of Rs 1,065.65 and an intraday low of Rs 1,012.00.

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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.
Moneycontrol News
first published: Aug 27, 2020 10:15 am

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