HAL share price today plunges as govt to sell stake, launches OFS
1 min read 23 Mar 2023, 10:32 AM ISTHindustan Aeronautics shares plunged more than 5% on the BSE in early deals
PremiumShares of Hindustan Aeronautics Ltd (HAL) plunged more than 5% to ₹2,475 apiece on the BSE after the government launched offer for sale (OFS) to sell 3.5% stake in HAL at a floor price of ₹2,450 per share.
The PSU defence company on Wednesday that the government is planning to sell up to 3.5% stake in aerospace and defence company this week in a deal that could fetch the government ₹2,867 crore. The floor price for the HAL stake sale is set at ₹2,450 apiece, at a discount to Wednesday's close.
The government plans to sell a 1.75% stake on March 23-24, and has the option to sell 1.75% more stake if needed. The two-day Offer For Sale (OFS) will open for institutional investors on Thursday and for retail buyers on Friday. The government owns a 75.15% stake in HAL which is a Central Public Sector Enterprises (CPSE) under the Defence Ministry.
The OFS comprises of base issue size of 1.75% or 58.51 lakh shares, with an option to retain over-subscription of an equal quantum. "In the event the oversubscription option is exercised, the equity shares forming part of the base offer size and the oversubscription option will represent 3.50 per cent (1,17,03,563) equity shares of the company," HAL said in a regulatory filing.
The government has so far mopped up ₹31,106.6 crore from disinvestment and share buyback in CPSEs. The government had last month pegged a lower revised estimates of disinvestment revenue estimates for the current fiscal at ₹50,000 crore, against the budget target of ₹65,000 crore.
For the quarter ended December 2022, state-owned Hindustan Aeronautics Limited reported a net profit of ₹1,155 crore, up 24% year-on-year as against ₹933 crore. Though, its revenue from Operations fell to ₹5,665 crore as compared to ₹5,894 crore in the corresponding quarter of last year.
