The government has kicked off its two-day offer for sale of OFS, but shares of Hindustan Aeronautics HAL went up nearly 6 per cent in Thursday's trade. The scrip fell 5.72 per cent to hit a low of Rs 2,475, which was largely in line with the Rs 2,450 per share floor price set for the issue.
The floor price was 6.6 per cent less than Wednesday's closing price.
The issue was subscribed 3 per cent and received bids for 1,361 shares against the issue size of 5,266, 603 shares at an indicative price of Rs 2,458 by 9.30 am. 40 apiece.
The Centre was looking to sell up to 3.5 per cent of the firm's aerospace and defence PSU, which would fetch it Rs 2,867 crore, based on the floor price. On Thursday, only the non-retail investors can place their bids. These investors can flag their willingness to carry forward their un-allotted bids to T 1 day for allocation to them in case the retail category stays unsubscribed.
Retail investors are subject to the receipt of 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.
The company said in its regulatory filings: "The government proposes to sell up to 1.75 per cent 58,51, 782 equity shares of the face value of Rs 10 each of the company, 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 the option to sell 1.75 per cent 58,51, 781 equity shares. The offer will take place on a separate window on the stock exchanges from 9: 15 am to 3: 30 pm.