State-owned Hindustan Aeronautics Ltd today said it has initiated the process of Initial Public Offer with the filing of the Draft Red Herring Prospectus with market regulator.
HAL has initiated the process of IPO with the filing of the Draft Red Herring Prospectus on September 29, 2017 with the Securities and Exchange Board of India, the company said in a statement.
“This is a major milestone towards listing of the defence PSU which is slated for partial disinvestment by the Government of India,” T Suvarna Raju, chairman of HAL, said. The Union government had in 2012 approved the sale of a 10 per cent stake in the aircraft maker.
In 2013, it appointed four merchant bankers—SBI Capital Markets, Goldman Sachs, Barclays and Axis Capital—for managing the stake sale.
A top company official during the Aero India in February had said that 3.615 crore equity shares at a face value of Rs 10 would be considered for the IPO, the valuation of which would be done by the book running lead managers and the other financial experts.
During 2015-16, 12 crore five lakh shares were offered for buyback in all, amounting to Rs 5,265 crore, HAL had earlier said.