The Centre is planning to sell up to 3.5 percent stake in aerospace and defence company Hindustan Aeronautics Ltd (HAL) via offer for sale (OFS), according to an exchange filing on March 22.
The stake sale would be valued at Rs 2,867 crore, and the government has set a floor price of Rs 2,450 apiece, which is at a 6.6 percent discount from its current share price.
The shares of HAL on March 22 closed 1.02 percent lower at Rs 2,623 apiece on BSE.
According to the regulatory filing, the government has proposed to sell 1.75 percent of its equity shares of the face value of Rs 10 each on March 23 and March 24 for non-retail investors and an additional 1.75 percent stake "in event the oversubscription option is exercised."
Back in 2020, the government had sold 15 percent of its equity stake in the company at Rs 1,001 per share to raise about Rs 5,000 crore via OFS. The sale price of Rs 1,001 per share was at a 15 percent discount.
The government owns around 75 percent stake in the company, which was listed in March 2018.
HAL is an Indian state-owned aerospace and defence company, headquartered in Bangalore. Established on December 23, 1940, it is one of the oldest and largest aerospace and defence manufacturers in the world.
