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Centre launches FY21 disinvestment drive with HAL, OFS oversubscribed

Experts said the government has timed the HAL share sale well. The stock has more than doubled from its March lows amid strong buying momentum in defence stocks.

HAL, hindustan aeronautics
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The Street is optimistic that defence companies like HAL will see an improvement in their order book going ahead.

Sundar Sethuraman Thiruvananthapuram
The government has kicked off the 2020-21 disinvestment programme with defence manufacturer Hindustan Aeronautics (HAL). The Rs 5,000-crore offer for sale (OFS) on Thursday saw oversubscription in the institutional investor segment with bids for 42.6 million shares as against 40.13 million on offer.  About Rs 4,257 crore worth of bids have been received so far and the centre will be hoping that retail investors -- those investing up to Rs 200,000 -- will place bids worth at least Rs 750 crore. About 10 million shares reserved for retail investors will be auctioned on Friday.

The base price for the OFS

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First Published: Aug 27 2020 | 4:55 PM IST

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