In keeping with plans to divest its stake in public sector undertakings (PSUs), including defence PSUs, the Union government has published an offer for sale (OFS) of 15% of its shares in the Bengaluru-based defence aerospace firm, Hindustan Aeronautics Limited (HAL).
The stake sale of 15% will fetch over ₹5,000 crore for the government, calculated at the current market price. The market capitalisation of HAL was ₹35,000 crore on Thursday’s market closure.
In the last Union Budget, the government had set itself a target to mop up ₹1.05 lakh crore through divestment of its holdings in PSUs. HAL said the government would appoint up to three merchant bankers for managing the OFS.
It has set a deadline of February 21, 2021, for submitting bids for the same. The Union government holds 89.97% of HAL which was listed on the bourses in March 2018.
“The government intends to divest 15% paid-up equity capital of HAL out of its shareholding of 89.97% through OFS method of shares by promoters,” said the request for proposal floated by the Ministry of Finance for the appointment of merchant bankers.
The news of the stake sale doesn’t seem to have gone down well with investors as shares of HAL closed at ₹811.60, down 1.69% over the previous close on the BSE.
During the financial year 2018-19, HAL had clocked a profit after tax of ₹2,282 crore. As of March 2019, HAL net worth stood at ₹10,848 crore.
