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HAL tumbles as OFS begins

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Capital Market
Last Updated : Aug 27 2020 | 1:04 PM IST

Hindustan Aeronautics (HAL) slumped 13.15% to Rs 1022.90 as the offer for sale (OFS) opened for non-retail investors today.

Through the OFS, the government proposes to sell 3,34,38,750 equity shares, constituting 10% paid-up share capital of the company, with an option to sell an additional 5% stake or 1,67,19,375 equity shares (oversubscription option).

The floor price for the OFS was set at Rs 1,001 each, a 15% discount to HAL's closing price of Rs 1177.75 on Wednesday.

The OFS opened on Thursday (27 August) for non-retail investors, while both retail as well as non-retail investors will be able to subscribe on Friday (28 August). A total of 20% of the offer size will be reserved for retail investors, and they will be allocated offer shares at a discount of 5% to the cut-off price in accordance with the OFS guidelines.

As on 12:15 IST, the OFS received subscription for 2,23,67,225 shares or 83.61% against the base non-retail offer size of 2,67,51,000 shares.

The Government of India (GoI) holds 89.97% in HAL as on 30 June 2020. HAL is engaged in carrying out design, development, manufacture, repair and overhaul of aircraft, helicopter, engines and related systems like avionics, instruments and accessories primarily serving Indian defence programme. It also manufactures the structural parts of various Satellite Launch Vehicles of the Indian Space Research Organization (ISRO).

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First Published: Aug 27 2020 | 12:17 PM IST

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