HAL Cracks 6% As Govt Proposes to Sell Stake: Here’s Why, Rationale
By Malvika Gurung
Investing.com -- Shares of the Navaratna public sector undertaking Hindustan Aeronautics (NS: HIAE ) fell 5.7% to Rs 2,475.1 apiece on Thursday after the Government proposed to sell an up to 3.5% stake in the company through an offer for sale (OFS).
The state-owned major informed the stock exchanges that the Indian government has proposed to sell no more than 3.5% stake in the company through an OFS on Thursday and Friday, valued at Rs 2,867 crore.
The said offer is being undertaken by the seller to achieve the minimum public shareholding of HAL, as prescribed under SEBI’s guidelines, the aerospace and defence major said.
The Centre (seller) looks to sell 58,51,782 equity shares of HAL, constituting up to a 1.75% stake at a face value of Rs 10 each on March 23, 2023 to (only) non-retail investors, and to retail as well as non-retail investors on March 24.
The seller will also provide an option to additionally sell another 1.75% stake or 58,51,781 shares of HAL if the Oversubscription Option is exercised.
A floor price of Rs 2,450/share has been fixed by the Government, with a 10% offer size reserved for retail investors.
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