The offer for sale (OFS) of Hindustan Aeronautics Ltd (HAL) was subscribed 1.60 times by non-retail investors on the first day of the issue on Thursday.
Further, the government has decided to exercise the greenshoe option and retail investors will get chance to bid on Friday (August 28) with a discount of 5 percent on the cut off price.
In an OFS, promoters of a company offload their stake in the company by selling their shares on an exchange platform. The floor price for the offer has been fixed at Rs 1,001 per equity share of the company.
Government holds 89.97 percent stake in state-owned defence firm HAL, which was listed on the stock exchanges in March 2018.”The government intends to divest 15 percent paid-up equity capital of HAL out of its shareholding of 89.97 percent through OFS method of shares by promoters,” said the request for proposal (RfP) floated by the finance ministry for appointment of merchant bankers.