Government To Sell Up To 3.5% Stake In Hindustan Aeronautics Via Offer For Sale
The base offer size will include 58.52 lakh shares at a floor price of Rs 2,450 per share.
The Ministry of Defence will offload up to 3.5% of its stake in the state-run Hindustan Aeronautics Ltd. through an offer for sale.
The base offer size will include 58.52 lakh shares—representing 1.75% of the entire shareholding of the defence PSU—at a floor price of Rs 2,450 per share, the company said in an exchange filing on Wednesday.
In case of oversubscription, the government will sell 1.17 crore shares, or an additional 1.75% stake in the company. In that case, the government would give up a total of 3.5% of its stake in Hindustan Aeronautics.
The offer will open on March 23 for non-retail investors and on March 24 for retail investors. Non-retail investors who place their bids on the first day and choose to carry forward their unallotted bids will be allowed to revise them on the second day.
Around 10% of the offer size will be reserved for retail investors, where they can place bids up to Rs 2 lakh. Any unsubscribed portion of the retail category after allotment can be allotted to non-retail bidders, the company said.
Hindustan Aeronautics will offer 25% of the issue size to mutual funds and insurance companies.
The employee portion of the issue will get 5% of the offer size, and the eligible employees can bid for lots aggregating to Rs 2 lakh.
The offer price is at a discount of 6.7% to Wednesday's closing price of Rs 2,625.2 per share. The company's 3.5% stake amounts to over Rs 3,072.4 crore at Wednesday's closing price.