Mumbai: Public sector chopper-maker Hindustan Aeronautics on Tuesday launched an initial public offer to raise up to Rs4,230 crore, through which government will divest up to 20.20% in the Maharatna company.
The firm, which gets over 91% of its sales from the defence sector including the Coast Guard, has fixed a price band at Rs1,215-1,240 per equity share for the offer that will hit the market on 16 March and close on 20 March.
The sale is part of the government’s Rs75,000-crore divestment process, which for the first time in many years, has already crossed the target.
The company, which made a profit of Rs3,580 crore in financial year 2016-17 on a revenue of over Rs18,600 crore, is offering a discount of Rs25 on offer price to retail individual bidders, and employees which have come in for at least 12 or the multiples of 12 shares.
The IPO will see the company selling 34,107,525 equity shares of face value of Rs10 through an offer for sale by the President, acting through the department of defence production under the defence ministry.
The offer comprises a net offer of 33,438,750 equity shares and an employee reservation of up to 668,775 shares.
The offer and net offer shall constitute 10.20% and 10%, respectively, of the post-offer paid-up equity share capital of the Bengaluru-based HAL.
The IPO, being managed by SBI Caps and Axis Capital, will see 50% of the net offer available for qualified institutional buyers, of which 5% is reserved for mutual funds.
Hindustan Aeronautics, set up in 1940, produces over 27 types of light combat aircraft and helicopters and is the 39th largest aerospace company in the world.
Acting chairman V.M. Chamola said HAL has an order book of over Rs68,000 crore, which covers the next three years and had a revenue of over Rs5,300 crore in the first half of the current fiscal, which he attributed to the seasonal factors.