India Looks To Sell Up To 15% Stake In Defence Major HAL Via Offer For Sale

In a stock exchange filing on Wednesday, India’s top aeronautics and defence company said the government will sell 33.43 million shares totalling a 10% stake to institutional and retail investors on 26 and 27 August. In case of oversubscription, a further 5% stake or 16.71 million shares would be offered. The floor price for the share sale has been set at ₹1,001 per share, a 15% discount to the closing price of ₹1,177.75 apiece on Wednesday.

The government currently holds a 89.97% stake in HAL. It sold a 10% stake through an initial public offering (IPO) in 2018, raising around ₹4,229 crore. The pandemic has caused major problems for the government, which had set itself an ambitious divestment target of ₹2.1 trillion for this fiscal year.

The article was first published on livemint.com