Hindustan Aeronautics IPO Subscribed 0.23 Times On First Day Of Bidding
Day 1 Subscription (As of 4 p.m.)
- Qualified institutional buyers: 0.43 times
- Non-institutional bidders: 0.01 times
- Retail investors: 0.06 times
- Employees: 0.03 times
- Overall: 0.23 times
India’s largest state-owned defence firm Hindustan Aeronautics Ltd.’s Rs 4,200 crore initial public offering was subscribed 0.23 times on the first day of bidding today.
The public offer of HAL received bids for 80.07 lakh shares as against 3.41 crore shares put on offer, according to stock exchange data as of 4 pm.
The portion reserved for qualified institutional buyers was subscribed 0.43 times the number of shares on offer, according to data provided by Axis Capital.Demand from retail and non-institutional investors remained muted with these segments subscribed 0.06 and 0.01 times respectively.
The three-day IPO is an offer for sale for 3.4 crore shares through which the government will sell 10 percent stake. The price band has been fixed at Rs 1,215-1,240 apiece.
India’s largest state-owned defence firm manufactures aircraft, helicopters and aeroengines, and also develops and repairs them. HAL’s biggest client currently is the Indian Army. The company’s order book stood at Rs 68,461 crore, as of Dec. 31, 2017 which will be executed over the next three years.