HAL OFS subscribed 4.5 times on day one
1 min read 23 Mar 2023, 11:33 PM ISTDespite the positive response to the sale, shares of Hindustan Aeronautics closed 4.9% lower at ₹2,496.35 apiece on the NSE.
PremiumMumbai: The government’s offer for sale (OFS) of a part of its stake in Hindustan Aeronautics Ltd was subscribed 4.5 times after seeing strong demand from non-retail investors, according to data from the NSE on Thursday.
It received bids for 237,600 shares, while 526,000 shares were on offer. The indicative price for the bids was ₹2,468.98, higher than the floor price of ₹2,450 per share.
If fully subscribed, the OFS would fetch about ₹2,800 crore to the exchequer.
As a result of the strong demand, the government will exercise its green shoe option for an additional 58.5 lakh shares, bringing the total offer size to 117,000 shares. Retail investors will be able to bid for the shares on Friday.
Despite the positive response to the sale, shares of Hindustan Aeronautics closed 4.9% lower at ₹2,496.35 apiece on the NSE. As of 31 December 2022, the government held a 75.15% stake in Hindustan Aeronautics. The current market cap of the company stands at ₹83,475 crore.
The OFS comprised of base issue size of 1.75% or 585,100 lakh shares, with an option to retain over-subscription of an equal quantum.
(PTI contributed to this story)
