BackHindustan Aeronautics IPO subscribed 99% on final day
As of 7 pm, the shares reserved for institutional investors in the HAL IPO saw a subscription of 173%, while those reserved for retail investors and HNIs were subscribed 38% and 3%, respectively
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Mumbai: The Rs4,229 crore initial public offering (IPO) of state-owned Hindustan Aeronautics Ltd (HAL) was under-subscribed on Tuesday, the last day of the share sale. The IPO witnessed an overall subscription of 99%.
While the portion of shares reserved for institutional investors in the HAL IPO received a firm response, those reserved for other categories of investors were under-subscribed.
As of 7 pm, the portion of shares reserved for institutional investors in the HAL IPO saw a subscription of 1.73 times or 173%, while those kept aside for retail investors and high net-worth individuals (HNIs) were subscribed to the extent of 38% and 3%, respectively.
HAL had set a price band of Rs1,215-1,240 per share for the public offering.
HAL’s IPO is a pure secondary offering, where the government of India is selling a total of 34.10 million shares, representing a 10.2% stake in the company.
HAL is engaged in the design, development, manufacture, repair, overhaul, upgrade and servicing of aircraft, aero engines, helicopters, avionics, accessories and aerospace structures. It is the largest public defence public sector undertaking (PSU) in the country and makes fighter planes such as Su-30 MkI, MiG-21, MiG-27 and Jaguar.
Meanwhile, the Rs512 crore IPO of auto parts maker Sandhar Technologies Ltd saw a subscription of 40% on Tuesday, the second day of its share sale.
As of 5 pm, the portion of shares reserved for institutional investors in the Sandhar IPO saw a subscription of 89%, while those kept aside for retail investors and HNIs were subscribed to the extent of 27% and 1%, respectively.
Sandhar has fixed a price band of Rs327-332 per share for its IPO. The offer closes on 21 March.
Incorporated by Jayant Davar in 1987, Sandhar started operations as a supplier to the Hero group. The firm manufactures 21 categories of products including safety and security systems such as lock assemblies, mirror assemblies, operator cabins for off-highway vehicles, aluminium spools, spindles, and hubs.
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