HAL shares down after dividend, share split announcement

HAL

Shares of Hindustan Aeronautics Ltd (HAL) fell more after the company declared its decision on dividend and stock split.

The company has declared a final dividend of Rs 15 per equity share of Rs 10 each fully paid up for the financial year 2022-23. Additionally, the company informed a stock split of existing one equity share of face value of Rs 10 each fully paid up into two equity shares of Rs 51 each fully paid up.

“The Record Date for the purpose of sub-division of equity shares shall be Friday, September 29, 2023, if sub-division is approved by the shareholders at AGM (Annual General Meeting),” the company said in a regulatory filing.

In the morning, the public defence company's scrip rose 2 percent intraday on June 27 ahead of the board meeting. The board of directors of the company were to consider recommendation of final dividend for the financial year 2022-23, and also mull over a proposal of sub-division of equity shares of HAL.

At 1:55 pm, the stock is down 0.8 percent at Rs 3,670.05 on the BSE.

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Besides, the stock has been removed from the Future & Options (F&O) ban list. Due to its futures and options contracts exceeding the open interest caps, the stock was suspended from trading on June 26.

HAL is backed by a healthy order backlog of around Rs 82,000 crore and robust order pipeline of over Rs 1,50,000 crore in the long term.

The company is in advanced talks for potential export partnerships and collaborations with countries such as Argentina, Philippines, Egypt, Sri Lanka, Maldives, Botswana, Thailand, and Nigeria which is likely to improve the long term growth prospects of HAL. Moreover, the government’s focus on the ‘Make in India’ initiative and reducing dependency on imports bodes well for a domestic player like HAL.

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