New Delhi: State-owned Hindustan Aeronautics will open its Rs 4,200-crore initial public offering for subscription on March 16, 2018.
The aerospace company, with a Navratna status, will offer 3,41,07,525 equity shares through an offer for sale by the President of India, acting through The Department of Defense Production, Ministry of Defense. Around 668,775 shares will be reserved for subscription by employees.
As it is entirely an offer for sale, the company will not receive any money from the issue. It is a part of the government’s 2017-18 divestment programme for which target had been revised to Rs 80,000 crore (from Rs 72,500 crore earlier) in the recent Union Budget.
The government will dilute 10.20 percent of its stake in the company through IPO that will close on March 20.
Hindustan Aeronautics (HAL) is engaged in the design, development, manufacture, repair, overhaul, upgrade and servicing of a wide range of products including, aircraft, helicopters, aero-engines, avionics, accessories and aerospace structures.
Its operations are organised into five complexes, namely the Bangalore complex, MiG complex, Helicopter complex, Accessories complex, and Design complex, which together include 20 production divisions and 11 research and design centers located across India.
Bharat Dynamics is the other public issue, through which the government will dilute its 12.25 percent stake and raise Rs 960 crore, will also open for subscription in the coming week.
Total three IPOs will be launched next week, including Bandhan Bank’s Rs 4,473-crore issue that will open on March 13.