The central government has decided to sell up to 15 percent stake in Hindustan Aeronautics (HAL) through an offer for sale (OFS) on August 27-28, 2020. The floor price has been fixed at Rs 1,001 per share.
The Government has proposed to sell 3,34,38,750 equity shares in the state-run aerospace and defence company through the OFS, which constitutes 10 percent paid-up share capital of the company, with an option to sell additional 5 percent stake or 1,67,19,375 equity shares.
The information was shared by Hindustan Aeronautics (HAL) in a regulatory filing. The sale is expected to fetch the exchequer around Rs 5,000 crore.
Key Highlights
• The offer for sale will take place on August 27-28 on a separate window of the stock exchanges. The offer price will be at a 15 percent discount to the closing price on August 26 - Rs 1,177.75.
• The total 20 percent of the offer size will be reserved for retail investors and they will be allocated offer shares at a discount of 5 percent to the cut-off price in accordance with the OFS guidelines.
• The government owns an 89.97 percent stake in Hindustan Aeronautics (HAL), which was listed in March 2018.
• YES Securities (India), IDBI Capital Markets & Securities and SBICAP Securities will be acting as the seller's broker for the offer. The IDBI Capital Markets will be acting as the settlement broker.
HAL shares fall by 11%
The share price of Hindustan Aeronautics (HAL) fell by 11 percent intraday on August 27 after reports of government selling up to 15 percent stake in the company through an offer for sale (OFS) broke out.
Background
The Government has set a disinvestment target of Rs 2.10 lakh crore for the fiscal year 2020-21. Out of this, around Rs 1. 20 lakh disinvestment will be undertaken in public sector undertakings and remaining Rs 90,000 crore from stake sale in financial institutions.
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