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(Photo: Reuters)
(Photo: Reuters)

Govt to mop up 5,020 crore through stake sale in HAL

  • The floor price for the share sale has been set at 1,001 per share, a significant discount to the closing price of 1,177.75 on Wednesday
  • HAL said govt will sell 33.43 million shares, or 10% stake, to institutional and retail investors

MUMBAI : The government will divest an additional up to 15% stake in Hindustan Aeronautics Ltd (HAL) through an offer for sale to potentially garner around 5,020 crore to mobilize resources amid the covid-led pressure on finances.

In a stock exchange filing on Wednesday, India’s top aeronautics and defence company said the government will sell 33.43 million shares totalling a 10% stake to institutional and retail investors on 26 and 27 August. In case of oversubscription, a further 5% stake or 16.71 million shares would be offered. The floor price for the share sale has been set at 1,001 per share, a 15% discount to the closing price of 1,177.75 apiece on Wednesday.

The government currently holds a 89.97% stake in HAL. It sold a 10% stake through an initial public offering (IPO) in 2018, raising around 4,229 crore. The pandemic has caused major problems for the government, which had set itself an ambitious divestment target of 2.1 trillion for this fiscal year.

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