Government-owned aerospace company Hindustan Aeronautics (HAL) has set a priced band of Rs 1,215 to Rs 1,240 per share for its initial public offer (IPO). The IPO is an offer for sale of 3.41 crore shares, which at the upper price of the band will translate into an offer size of Rs 4,229 crore. The offer will open on March 16 and close on March 20. Retail investors will get a discount of Rs 25 on the offer price. Bids can be made for a minimum of 12 shares and multiples of 12 shares thereafter. The 100% offer-for-sale constitutes 10.20% of the post-offer paid up equity share capital of the company. The offer is a part of the disinvestment programme of the government, and all the proceeds will go to the central exchequer. The company is engaged in the design, development, manufacture, repair, overhaul, upgrade and servicing of a range of products including, aircraft, helicopters, aero-engines, avionics, accessories and aerospace structures. The company has 20 production divisions and 11 research and design centres. As of December 31, 2017, the company had an order book worth Rs 68,461 crore, which includes products and services to be manufactured and delivered.
In the six-month period ended September 30, 2017, Indian Defence Services accounted for 91.4% of the company’s total sales. HAL posted a net profit of Rs 391 crore for the six months ended September 2017. For the year ended March 2017, the company had posted a net profit of Rs 2,624 crore. HAL joins a long list of companies that have raised funds from the market in the recent past. In 2017, 36 companies raised Rs 67,147 crore through IPOs. Listing gains and the positive sentiment in the market are among the reasons attributed to the trend, 2017.