Hindustan Aeronautics IPO subscribed 99%

Receives bids for 3.37 crore shares

The initial public offer (IPO) of Hindustan Aeronautics received bids for 3.37 crore shares, National Stock Exchange of India (NSE) data showed. The issue was subscribed 0.99 times. The price band for the IPO was Rs 1,215 to Rs 1,240 per share. The IPO opened on 16 March 2018 and closed on 20 March 2018.

Category-wise subscription details showed that the qualified institutional buyers (QIBs) category was subscribed 1.73 times, the non-institutional investors category was subscribed 0.03 times and the retail individual investors (RIIs) category received subscription of 0.39 times.

The offer comprised an offer for sale by the Government of India (GoI) of 3.41 crore shares. GoI will hold 89.8% of total paid up equity share capital of the company post listing.

The objects of the issue was to carry out the divestment program of the government of India apart from the benefits of listing the equity shares on the BSE and the NSE and to enhance its visibility and brand image and provide liquidity to its existing shareholders.

On a consolidated basis, Hindustan Aeronautics reported a net profit of Rs 389.70 crore on net sales of Rs 5172.50 crore in the six months ended September 2017.

Hindustan Aeronautics (HAL) is a defence public sector undertaking (DPSU) 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.

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