Government To Divest 15 Percent Stake In HAL

The government will divest a stake of up to 15 percent in state-owned defence major Hindustan Aeronautics (HAL) through offer for sale (OFS). The floor price for the offer has been pegged at Rs 1,001 per share of the company.

Government To Divest 15 Percent Stake In HAL

Though the centre proposes to sell 3,34,38,750 equity shares accounting for 10 per cent paid-up capital of the company which is the base size, there is an option of divesting 5% additional share or 1,67,19,375 equity shares in the oversubscription option."...in event the Oversubscription Option is exercised, the equity shares forming part of the Base Offer Size and the Oversubscription Option will represent 15% (50,158,125) equity shares of the Company," it said in an exchange filing. In the present scenario, the centre holds 89.97 per cent ownership in the firm.

For non-retail investor bids, the window will remain open only for today i.e. August 27,2020, while retail investors will have the chance to apply for HAL OFS on August 28 alone.

IDBI Capital Markets & Securities, SBICAP Securities and YES Securities will act as the government's brokers for the OFS.

Further as per the guidelines for the OFS, non-retail investors can also specify on their interest to take unalloted bids forward to the next day for allocation to them in the unsubscribed portion of the retail category. Such investor category will be permitted to change their bids upward on August 28.

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