BENGALURU: Three years after its board had approved the
Draft Red Herring Prospectus
(DRHP), the Centre has approved a 10% stake sale in defence PSU Hindustan Aeronautics Limited (
HAL
), a 77-year-old company headquartered in Bengaluru.
HAL, which employs nearly 30,000 people, has initiated the process of an Initial Public Offer(
IPO) with the filing of the DRHP—an offer document detailing HAL’s plans to raise money from the public—with market regulator
Securities Exchange Board of India
(
Sebi
), on September 29.
The IPO is for 3.61 crore equity shares of face value of Rs 10 each, with the Centre continuing to hold the remaining 90% of the shares. “A discount of up to 5% on the offer price may be offered to Retail Individual Bidders (retail discount) and to Eligible Employees,” HAL has claimed.
HAL Chairman T Suvarna Raju termed the filing of the DRPH a major milestone in the process of a partial stake sale, but did not comment on what it means for the firm.
Former HAL
chairman
RK Tyagi
, who was holding the position when the stake sale was cleared by the HAL Board in October 2014, called it a positive move as it will bring in more transparency and accountability.
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