HAL initiates IPO process with filing  offer document, Govt to sell 10% stake

State-owned Hindustan Aeronautics Ltd (HAL) on Sunday said it has initiated the process of Initial Public Offer (IPO) with the filing of the Draft Red Herring Prospectus,  with market regulator SEBI.

BENGALURU: State-owned Hindustan Aeronautics Ltd (HAL) on Sunday said it has initiated the process of Initial Public Offer (IPO) with the filing of the Draft Red Herring Prospectus,  with market regulator SEBI.

Commenting on the development, HAL CMD T Suvarna Raju said “This is a major milestone towards listing of the defence PSU which is slated for partial disinvestment by the government of India.”
The Union government had in 2012 approved the sale of a 10 per cent stake in HAL.

HAL had initiated the process of IPO with the filing of the Draft Red Herring Prospectus, an offer document detailing the company’s plans to raise money from the public (DRHP) on September 29, 2017 with SEBI, the company said in a statement.

The company had in 2013 appointed four merchant bankers — SBI Cap, Goldman Sachs, Barclays and Axis Capital — for managing the stake sale.

A top company official during the Aero India in February had said that 3.615 crore equity shares at a face value of Rs 10 would be considered for the IPO, the valuation of which would be done by the Book Running Lead Managers (BRLMS) and the other financial experts.
During 2015-16, 12.05 crore shares were offered for buyback in all, amounting to Rs 5,265 crore, HAL had earlier said.

The Bengaluru-based defence PSU  posted a sales of Rs 17,406 crore in financial year 2016-17.

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