Hindustan Aeronautics’ 15% OFS likely early March

New Delhi: Stepping up its efforts to achieve the target of Rs 65,000 crore in FY20, the Disinvestment Department (DIPAM) may issue the 15 percent government equity for sale through the OFS route in the first week of March for Hindustan Aeronautics Ltd, sources said.

At the current market price of Rs 774 apiece, the share sale will fetch the government a little over Rs 3843 crore. The company had reported a net profit of Rs 2,282 crore in fiscal 2018-19.

Sources said the efforts are on to hold the OFS by March first week. OFS is the quickest way to go for receipts for fetching sell-off revenues. Last month, the department issued a request for proposals (RFP) from merchant bankers and brokers for the OFS.

The government holds 89.97 percent of the equity in HAL. The face value of each equity share is Rs 10. So far the government has garnered Rs 34000 crore which includes Rs 16,500 crore from the 7th tranche of the CPSE ETF.

The authorized share capital of the 55-year old company is Rs 600 crore and the paid-up equity capital is Rs 334.39 crore as of March 31, 2019.

“The government is also considering allotting shares to eligible and willing employees of HAL at a discount to the Issue/discovered price (lowest cut off price) up to a maximum of a certain percentage of the OFS size subsequent to completion of the transaction under OFS. The percentage and extent shall be decided in due course,” it said.

(IANS)