InvestorQ : What has been the response to the HAL OFS that is current on?
vaishnavi mhatre made post

What has been the response to the HAL OFS that is current on?

vidhya Laxmi answered.
2 years ago

The Hindustan Aeronautics OFS is open on 27 and 28 August and at the end of the first day of the OFS, the non-retail portion of the HAL offer for sale had been subscribed by 1.3 times or 130%. The OFS was announced at a discount of 15% to the CMP.

On Thursday, shares of HAL fell by 14% to close at Rs.1012, very close to the OFS price of Rs.1001. The OFS is structured in such a way that it initially offer 10% stake in the company but with the leeway to retain another 5% if there is sufficient oversubscription for the issue.

The total funds raised from the 15% stake sale would be around Rs.5020 crore. The government had sold 10% in Mar-18 and at the end of the full OFS, the government stake would come down to 75% in line with exchange public holding requirements.

In the last few weeks, HAL has been in the news after the government promised opening defence to domestic in-sourcing. The government may have found it an opportune moment to monetize the rally. The issue looks likely to get substantially oversubscribed.