HAL ends flat after OFS

Hindustan Aeronautics settled almost flat at Rs 1010.85 after the company's offer for sale (OFS) ended on Friday.

Through the OFS, the government offered to sell 3.34 crore equity shares, constituting 10% paid-up share capital of the company, with an option to sell an additional 5% stake or 1.67 crore equity shares (oversubscription option). The floor price for the OFS was set at Rs 1,001 each.

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). On Thursday (T day), the OFS received subscription for 4.27 crore shares or 106.60% against the total non-retail offer size of 4.01 crore shares.

A total of 20% of the offer size was 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. The government on Friday decided to exercise the oversubscription option.

As on 15:25 IST on Friday (T+1 day), the OFS received total bids for 93.78 lakh shares or 93.49% of the total retail offer size of 1 crore shares. The non-retail segment received bids for 21.46 lakh shares or 21.40% of the total retail offer size of 1 crore shares.

The Government of India (GoI) holds 89.97% stake while public shareholders holds 10.03% stake in HAL as of 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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