HAL share tumbles 14 as government plan to divest 15 of its stake.
New Delhi: The floor price for the offer shall be Rs 1,001 per equity share of the company.
The share price of Hindustan Aeronautics (HAL) on Thursday tumbled nearly 14 percent after the company announced that the government is going to sell 15 percent of its equity stake in the state-owned firm through Offer For Sale (OFS).
The floor price for the offer shall be Rs 1,001 per equity share of the company. The offer could fetch the government around Rs 5,020 crore in case of over-subscription.
At 1.58 p.m., shares of HAL were trading at Rs 1013.15, lower by Rs 164.60 points or 13.98 percent from the previous close of the BSE.
On the NSE, it was trading at Rs 1013.75, down by 163.85 points or 13.91 percent.
In a regulatory filing on Wednesday, HAL said that Centre will sell a stake of about 10 percent, with an option to sell a further 5 percent in the company through an offer for sale (OFS).
“The seller proposes to sell up to 10 percent equity shares of the face value of Rs 10 each of the company, on August 27, 2020, (for non-retail investors only) and on August 28 (for retail investors and non-retail Investors who choose to carry forward their un-allotted bids) with an option to additionally sell 5 percent equity shares of the company (the oversubscription option),” it said.
As the government holds majority equity (89.97 percent) stake in the listed firm, it can offload a part of the stake by selling its shares on an exchange platform.
“The OFS will take place on a separate window of the stock exchanges (BSE and NSE) on August 27-28 to institutional and retail investors,” said the filing.
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