Government to sell 3.5 percent stake in Hindustan Aeronautics through OFS

Government to sell 3.5 percent stake in Hindustan Aeronautics through OFS


Accordingly, the government will come out with a two-day open offer for sale (OFS) to sell its stake in HAL. Institutional investors will be able to buy its shares on Thursday while retail investors will be able to buy on Friday.

The government will sell its 3.5 per cent stake in defense public sector Hindustan Aeronautics Limited (HAL) at a floor price of Rs 2,450 per share, which is expected to fetch around Rs 2,800 crore. HAL gave this information to the stock exchanges on Wednesday. Accordingly, the government will come out with a two-day open offer for sale (OFS) to sell its stake in HAL. Institutional investors will be able to buy its shares on Thursday while retail investors will be able to buy on Friday.

Under the OFS, HAL will initially offer 1.75 per cent stake ie 58.51 lakh shares with an option to sell further shares in case of oversubscription. In this way, the total stake of HAL can be offered up to 3.5 percent. Under the OFS, the floor price has been fixed at Rs 2,450 per share. At this price, if the entire stake of 3.5 per cent is sold, the government will get Rs 2,800 crore.

The government currently holds 75.15 per cent stake in HAL. This stake sale will help the government to increase its disinvestment revenue. The government has so far raised Rs 31,106.64 crore in the current financial year through disinvestment of Central Public Sector Undertakings and share buyback. Though the disinvestment target for the financial year 2022-23 was kept at Rs 65,000 crore, it was revised to Rs 50,000 crore last month.

Disclaimer:IndiaTheNews has not edited this news. This news has been published from PTI-language feed.





Source link