Government to sell up to 15% stake in HAL to raise Rs 5,000 crore – Times of India

BENGALURU: The Centre will sell up to 15% stake in state-owned defence unit Hindustan Aeronautics Ltd (HAL) which will help it mop up about Rs 5,000 crore at a time when its finances have been stretched due to the ongoing pandemic.
HAL said that the government will sell 33.4 million shares, or 10% of its stake, on Thursday and Friday to institutional and retail investors. In case of oversubscription, another 5%, or 16.7 million shares would also be put on the block, the company said in a filing with the BSE.
The floor price of the shares is set at Rs 1,001, which is 15% below the closing price of Rs 1,177 on Wednesday.
The government holds about 90% in HAL post its IPO in 2018. HAL, a navaratna, is the largest defence PSU in the country and makes fighter planes such as MiG-21, MiG-27, Jaguar, and Su-30 MkI under license. It designs, develops manufactures, repairs and overhauls aircraft, helicopters, aero engines, avionics, accessories and aerospace structures. It has 20 production divisions and 11 research and design centres.
The divestment is part of the government’s target to mop up Rs 2 trillion by paring its stake in various public sector units. Earlier this month, it extended the deadline for submission of bid for divestment of Bharat Petroleum (BPCL). It is also preparing for an IPO of LIC.