India

Govt To Sell 15% Stake In HAL To Mop Up Rs 5,020 Crore

By
OB Bureau

Mumbai: The Central government has decided to divest an additional 15% stake in Hindustan Aeronautics Ltd (HAL) to garner around 5,020 crore to mobilise resources to ease the COVID-19 related 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 August 26 and 27, according to a ‘livemint’ report.

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 a piece on Wednesday.

The government holds 89.97% stake in HAL. It sold 10% stake through an initial public offering (IPO) in 2018, raising around 4,229 crore.

OB Bureau

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