Government to sell off 10 percent of HAL
The Indian Cabinet has agreed to divest 10% of its 100% holding in Hindustan Aeronautics Limited (HAL). The official press release as published on the Cabinet website is as follows:
“The Cabinet Committee on Economic Affairs has approved to divest 10 percent equity in Hindustan Aeronautics Limited (HAL) out of its holding of 100 percent through an Initial Public Offer (IPO) in the domestic market as per the Securities and Exchange Board of India (SEBI) Rules and Regulations. Five percent discount on the issue price will be allowed for retail investors as well as to eligible employees of HAL applying under the employees reservation portion.
The paid up equity capital of the company, as on 31st March, 2012 is Rs.120.50 crore. Currently, the company is unlisted.
After the divestment of 10 percent, Government of India’s shareholding in the company would come down to 90 percent.
HAL is a Schedule – ‘A’, Navratna Central Public Sector Enterprise under the administrative control of the Ministry of Defence. It is engaged in the designing and development of Fixed Wing Aircraft, Rotary Wing Aircraft and their systems/accessories/avionics, manufacturing of Aircraft (Fighter, Trainers and Transport), Helicopter and associated aero engines, accessories and avionics for both military and civil applications.”