Offer for sale of HAL's shares gets good response

New Delhi, March 23

Government on Thursday said the offer for sale (OFS) of its shares in Hindustan Aeronautics Limited (HAL) has got a good response, as on the first day, the issue got subscribed 4.5 times of its base size.

A tweet by the department of investment and public asset management (DIPAM), said, "Offer for Sale of Govt shares in HAL got great response on day one. Issue subscribed 4.5 times of base size at a clearing price above the floor price by non-retail investors. Govt has decided to exercise the green shoe option. Retail investors get chance to bid tomorrow."

Centre plans to sell up to 3.5 per cent stake in HAL via OFS route.

The stake sale is valued at Rs 2,867 crore, and the government has set a floor price of Rs 2,450 apiece, which is at a 6.6 per cent discount from its current share price.

According to a regulatory filing by HAL on Wednesday, the government has proposed to sell 1.75 per cent of its equity shares of the face value of Rs 10 each on March 23 and March 24 for non-retail investors and an additional 1.75 percent stake "in event the oversubscription option is exercised."

In 2020, government had sold 15 per cent of its equity stake in HAL at Rs 1,001 per share to raise about Rs 5,000 crore via OFS.