State-owned Hindustan Aeronautics will open its Rs 4,200-crore initial public offering for subscription on March 16, 2018.
The aerospace company, with a Navratna status, will offer 3,41,07,525 equity shares through an offer for sale by the President of India, acting through The Department of Defence Production, Ministry of Defence. Around 668,775 shares will be reserved for subscription by employees.
As it is entirely an offer for sale, the company will not receive any money from the issue. It is a part of the government’s 2017-18 divestment programme for which target had been revised to Rs 80,000 crore (from Rs 72,500 crore earlier) in the recent Union Budget.
The government will dilute 10.20 percent of its stake in the company through IPO that will close on March 20.
Media reports indicated the price band for the issue is fixed at Rs 1,215-1,240 per share and retail investors will get shares at a discount of Rs 25 per share.
At the above price band, the company is expected to raise Rs 4,144-4,119 crore through the issue.
Hindustan Aeronautics (HAL) is engaged in the design, development, manufacture, repair, overhaul, upgrade and servicing of a wide range of products including, aircraft, helicopters, aero-engines, avionics, accessories and aerospace structures.
Its operations are organised into five complexes, namely the Bangalore complex, MiG complex, Helicopter complex, Accessories complex, and Design complex, which together include 20 production divisions and 11 research and design centres located across India.
As of December 31, 2017, its order book was Rs 68,461 crore, which generally includes products and services to be manufactured and delivered and excludes anticipated revenues from joint ventures and subsidiaries.
Bharat Dynamics is the other public issue, through which the government will dilute its 12.25 percent stake and raise Rs 960 crore, will also open for subscription in the coming week.
Total three IPOs will be launched next week, including Bandhan Bank’s Rs 4,473-crore issue that will open on March 13.