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Government to divest up to 15% stake in HAL
Why is it in news?
- The Centre is looking to raise around Rs. 5,000 crore by divesting up to 15% stake in state-owned Hindustan Aeronautics Ltd. (HAL).
Details:
- Government would sell 33.43 million shares of face value of Rs.10 each, representing 10% of the total paid-up equity share.
- In case of over-subscription, a further 5% stake or 16.71 million shares would be offered.
- The floor price for the offer was fixed at Rs. 1,001 a share.
Background:
- The government has set an ambitious disinvestment target of Rs. 2.1 lakh crore for 2020-21.
- Economy has been further hit by the COVID-19 pandemic.
Present status of HAL:
- The government currently holds a 89.97% stake in HAL after selling a 10% stake through an Initial Public Offering (IPO) in 2018.
- HAL is the only aircraft manufacturer in the country and assembles and builds a range of military helicopters and aircraft.