Centre Plans To Sell Up To 3.5 Per Cent Stake In Defence PSU HAL, Launches Offer For Sale
The Central government is selling up to 3.5 per cent of its stake in defence and aerospace PSU Hindustan Aeronautics Ltd (HAL) for Rs 2,867 crore, according to a regulatory filing.
The stake sale is based on a floor price of Rs 2,450 apiece, at a significant discount to its current closing price of Rs 2,500.
The shares in the public sector aerospace and defence company is mostly held by the government with a 75.15 per cent stake, and its current market cap stands at around Rs 83,700 crore.
The offer for sale is being undertaken to ensure that the minimum public shareholding of the company is met, as required by the Securities and Exchange Board of India's listing obligations, reports Economic Times.
In 2020, the government successfully sold 15 per cent stake in Hindustan Aeronautics (HAL) for Rs 5,000 crore through an offer for sale (OFS) that garnered significant interest from investors.
The government has offered to sell 1.75 per cent of equity shares on Wednesday (23 March) and Thursday (24 March), and another 1.75 per cent if oversubscribed, as per the stock exchange filing.
Further, 10 per cent of the offer size will be reserved for retail investors subject to the receipt of valid bids, according to the regulatory filing.
Retail investor means an individual investor who places bids for shares of total value of not more than Rs 2,00,000.
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