Government Plans To Sell 15% Stake In Hindustan Aeronautics
The government is planning to sell 15 percent stake in Hindustan Aeronautics Ltd. through an offer for sale, which could fetch about Rs 4,000 crore to the exchequer.
The government is looking to appoint up to three merchant bankers for managing the offer for sale and has invited bids for the same by Feb. 21.
It holds 89.97 percent stake in state-owned defence firm HAL, which was listed on the stock exchanges in March 2018.
"The government intends to divest 15 percent paid-up equity capital of HAL out of its shareholding of 89.97 percent through OFS method of shares by promoters," said the request for proposal floated by the finance ministry for the appointment of merchant bankers.
The sale of 15 percent stake in HAL would fetch about Rs 4,000 crore to the government, calculated at the current market price. Shares of HAL closed at Rs 811.60, down 1.69 percent over the previous close on the BSE.
The merchant bankers would advise the government on the timing and modalities of the OFS, conduct market surveys and roadshows and advise on regulatory norms, among others.
In the financial year 2018-19, HAL had clocked a profit after tax of Rs 2,282 crore. As on March 2019, its net worth stood at Rs 10,848 crore.
So far, in the current financial year, the government has mopped up Rs 18,094.59 crore through disinvestment transactions as compared with the budget target of Rs 1.05 lakh crore.