HAL book-building mops up Rs 385 crore

Our Corporate Bureau

Mumbai, Aug 10: Premier defence undertaking Hindustan Aeronautics Ltd (HAL) has mobilised a record Rs 385 crore for an issue of Rs 200 crore through book building. The issue was arranged by Allianz Securities.

According to a press release, HAL’s issue, which opened on August 1 and ended on August 8, has set a benchmark for AAA-rated paper in the money market by achieving a cut-off rate of 9.25 per cent
payable annually.

This is the lowest coupon achieved by any AAA paper for a seven year tenure with put and call option at the end of five years.

Allianz Securities sources said that the highlight of the issue was that the cut-off coupon was determined at 10 basis point below the upper end of the coupon band.

HAL, which has clocked a sales turnover of Rs 2,461 crore for the year ended March 31, 2001, would utilise the proceeds for their various aviation related projects.