HAL share tanks 15 % as Government to sell up to 15% stake
Published On: Thursday, August 27, 2020 | By: Team KnowMyStock
Shares of Hindustan Aeronautics tanked 15 % on the BSE on Thursday, after the company informed that the government plans to sell as much as 15 % stake in the company through a public offering of shares in the next two days. 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. The government is selling its stake at a floor price of Rs 1,001 per share through an offer for sale (OFS). The offer could fetch the exchequer around Rs 5,020 crore. The government proposes to sell 3,34,38,750 equity shares representing 10 per cent paid-up share capital of the company, with an option to sell an additional 5 per cent stake or 1,67,19,375 equity shares. A total of 20 per cent of the offered size will be reserved for retail investors, and they will be allocated offer shares at a discount of 5 per cent to the cut-off price in accordance with the OFS guideline. The government holds about 90% in HAL post its IPO in 2018.
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