The government will sell up to 3.5 per cent stake in state-run aerospace firm Hindustan Aeronautics Limited (HAL) through an offer for sale (OFS) at a floor price of Rs 2,450 per share as it seeks to shore up its disinvestment target for the current fiscal.
At the floor price, which is lower than Wednesday’s share price of Rs 2625.20 per share on the BSE, the stake sale will be valued at about Rs 2,867 crore.
For this year (2022-23), the government has so far mopped up Rs 31,106.64 crore by selling its stake in various PSUs against the disinvestment target of Rs 50,000 crore. The government had earlier set a disinvestment target of Rs 65,000 crore for the current fiscal, which was later revised downwards to Rs 50,000.
“The government proposes to sell up to 1.75% (58,51,782) equity shares of the face value of Rs 10 each of the company, on March 23 (for non-retail Investors only) and on March 24 (for retail investors and non-retail investors who choose to carry forward their un-allotted bids with an option to additionally sell 1.75% (58,51,781) equity shares,” the state-run defence contractor said in an exchange filing.
“The Offer is being undertaken by the Seller, inter-alia, for achieving the minimum public shareholding of the Company as prescribed…,” the filing added.
Currently, as per data available on the BSE, the government owns 75.15 per cent of shares of the company, while 24.85 per cent is held by the public. Current norms require public shareholders to own a minimum of 25 per cent stake in a listed entity. However, PSUs are exempt from this rule.
In 2020, the government announced selling as much as 15 per cent of its equity stake in HAL at Rs 1,001 per share to raise about Rs 5,000 crore through an offer for sale.
