Govt seeks bids from merchant bankers for advice on HAL share sale1 min read . Updated: 30 Jan 2020, 05:47 PM IST
- At the current market price of ₹820 apiece, the share sale will fetch the government a little over ₹4,072 crore
- The company reported a net profit of ₹2,282 crore in fiscal 2018-19
NEW DELHI : The government has invited merchant bankers to advise it on the divestment of state-run Hindustan Aeronautics Ltd (HAL).
The Department of Investment and Public Asset Management (DIPAM) on Thursday issued a Request for Proposal (RFP) for appointing merchant bankers and brokers for disinvestment of 15% paid up equity capital in state-run Hindustan Aeronautics Ltd (HAL) through an offer for sale (OFS).
According to the RFP, the authorised share capital of the 55-year old company is Rs600 crore and the paid up equity capital is Rs334.39 crore as of 31 March, 2019. The government holds 89.97% of equity in HAL. The face value of each equity share is Rs10.
At the current market price of ₹820 apiece, the share sale will fetch the government a little over Rs4,072 crore. In the current fiscal so far, the government has garnered ₹18,094.59 crore through disinvestment transactions compared to an ambitious target of Rs1.05 trillion rupees.
The company reported a net profit of Rs2,282 crore in fiscal 2018-19.
“The government is also considering allotting shares to eligible and willing employees of HAL at a discount to the Issue/ discovered price (lowest cut off price) up to a maximum of certain percentage of the OFS size subsequent to completion of the transaction under OFS. The percentage and extent shall be decided in due course," it said.