Hindustan Aeronautics IPO to open on March 16
March 11, 2018: The Government of India’s Navratna company, Hindustan Aeronautics, will open its Rs 4,200-crore initial public offering (IPO) for subscription on March 16 this year.
The company has fixed price band of Rs 1,215-1,240, and it expects to raise Rs 4,144-Rs 4,119 crore through the issue.
The company will offer 3,41,07,525 equity shares through an offer for sale by the President of India, acting through The Department of Defence Production, Ministry of Defence. Around 668,775 shares will be reserved for subscription by the Hindustan Aeronautics employees.
Media reports said the price band for the issue has been fixed at Rs 1,215-1,240 per share and retail investors would get shares at a discount of Rs 25 per share.
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. Earlier, in the Union Budget the target was fixed at Rs 72,500 crore.
The government will dilute 10.20% of its stake in the company through IPO that will close on March 20.
At the fixed price band, the company is expected to raise Rs 4,144-Rs4,119 crore through the issue.
The Navratna company Hindustan Aeronautics (HAL) is involved in 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 run at five complexes– Bangalore Complex, MiG Complex, Helicopter Complex, Accessories Complex, and Design Complex. They together include 20 production divisions and 11 research and design centres located across the country.
As of December 31, 2017, the company’s order book was Rs 68,461 crore, which generally included products and services to be manufactured and delivered and excludes anticipated revenues from joint ventures and subsidiaries.