The Centre plans to sell up to 3.5 per cent of the company's stake in aerospace and defence PSU firm Hindustan Aeronautics Ltd HAL through an offer for sale OFS, it said in a regulatory filing on Wednesday. The floor price for the OFS has been fixed at Rs 2,450 per share, a 6.6 per cent discount from Wednesday's closing price. The stake sale would be valued at Rs 2,867 crore, based on a floor price of Rs 2,450 apiece, which is a discount from its current share price.
The company wants to sell up to 1.75 per cent 58,51, 782 equity shares of the face value of Rs 10 each of the company, and on March 23 for non-retail investors and on March 24 for retail investors and non-retail investors who choose to carry forward their un-allotted bids with an option to sell 1.75 per cent 58,51, 781 equity shares. On March 23, 2023 T' day and March 24th, 2023 T 1' day, the offer will take place on a separate window of the Stock Exchanges BSE and NSE, from 9: 15 am to 3: 30 pm on both days.
The offer size is reserved for retail investors who receive valid bids, which is about 10 per cent of the offer size. The stock exchanges will decide the number of shares eligible to be considered in the retail category based on the floor price.
Non-retail investors can only place their bids on the T-day. The regulatory note said that non-retail investors, while placing their bids, can flag their willingness to carry forward their un-allotted bids to T 1 day for allocation to them in the unsubscribed portion of the Retail Category.
Non-retail investors, who have placed their bids on T-day and have chosen to carry forward their un-allotted bids to T 1 day, will be allowed to revise their bids upward on T 1 day, as per the OFS Guidelines.
According to Refinitiv Eikon, the centre has a 75.15 per cent stake in the company, which was listed in March 2018. Its current market is Rs 87,800 crore. The shares of HAL closed at Rs 2,623 apiece on the BSE on March 22 at 1.02 per cent.
The Centre is not able to make its divestment target for FY 2022 -- 23 as it plans to hold the part sale of its stake in Hindustan Zinc HZL unless the company calls off the nearly $3 billion cash acquisition of two Vedanta Group subsidiaries.
The budget documents show that the Centre expected to raise Rs 51,000 crore from stake sales in various state-owned companies this year. The data from the DIPAM website shows that the proceeds from the disinvestment stood at Rs 31,106. Only 48 per cent of the budgeted amount of Rs 65,000 crore is allocated for 64 crore. The mop-up estimate for the current fiscal has been revised to Rs 50,000 crore.