Defence Public Sector Undertakings Company, Hindustan Aeronautics Limited (HAL) is floating Rs 42-billion (Rs. 4,200 Crore) initial public offering (IPO) for subscription between March 16, and March 20, 2018.
The price band for the offer is Rs 1,215 to Rs 1,240 per share. Retail investors are offered a discount of Rs 25 per share.
The offering will be through an offer for sale (OFS) route by the govt as part of its 2017-18 disinvestment programme. The govt is diluting 10.2 percent of its stake in the defence company through the Initial Public Offer.
The objects of the IPO is to carry out the disinvestment of 3,61,50,000 Equity Shares by the Selling Shareholder (President of India) constituting 10 percent of the Company’s pre-Offer paid up Equity Share capital of the Company and to achieve the benefits of listing the Equity Shares on the Stock Exchanges.
The Bengaluru based company, Hindustan Aeronautics Limited is incorporated in 1963, The Company is engaged in the design, manufacture, development, repair, overhaul, upgrade and servicing of a wide array of products viz, aircraft, aero-engines, helicopters, avionics, accessories and aerospace structures. It is the thirty ninth largest aerospace companies in the world in terms of revenue.