Govt to mop up ₹5,020 crore through stake sale in HAL1 min read . Updated: 26 Aug 2020, 10:46 PM IST
- 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.