Govt targets Rs 2.9K cr from HAL OFS

Disinvestment receipts stood at `31,106 crore so far in FY23 or 62% of the revised estimate of `50,000 crore.

Two big ALH Crashes: HAL Needs to address safety issues
Hindustan Aeronautics Limited is not new to the aerospace sector. The HF 24 Marut, HT-2, HPT-32 and Kiran are all in-house HAL designs. (File)

The Union government on Wednesday announced disinvestment of up to 3.5% stake in Hindustan Aeronautics (HAL) to raise about `2,867 crore. The offer for sale (OFS) issue will be open from Thursday-Friday.

The floor price for the offer has been set at `2,450 per equity share, at a discount of 6.7% to the closing price of `2,625/share on the BSE on Wednesday.

Only non-retail investors are permitted to place their bids on Thursday. Retail investors as well as non-retail investors, who choose to carry forward their unallotted bids, could place their bids on Friday.

The OFS constitutes a base offer size of 1.75% (5.85 million) of equity shares of the face value of `10 each of the company with an option to additionally sell 1.75%, taking the total offer size to 3.5%, according to the company’s notice to the BSE. Currently, the government owns 75.15% of the defence public sector enterprise, which is India’s major fighter jet and helicopter maker.

Disinvestment receipts stood at `31,106 crore so far in FY23 or 62% of the revised estimate of `50,000 crore.

The HAL OFS would augment non-debt capital receipts in the current fiscal even though a shortfall is expected in overall annual disinvestment receipts as the government might not go ahead with the plan sell a portion of its residual 29.54% stake in Hindustan Zinc (HZL).

HAL’s net profit jumped 57% on year to of `5,087 crore in FY22. It reported a 23% on year increase in net profit at `1,154 crore in the December quarter of FY23.

HAL is also manufacturing engines, communication equipment, navigation equipment, display systems, hydraulic systems, electric equipment etc, required for aircraft/helicopters.

Currently, out of the total airborne fleet in use by the defence services, HAL has supplied about 61% and is supporting 75% of all the aircrafts/helicopters.

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

First published on: 23-03-2023 at 05:45 IST