Mumbai: Shares of Hindustan Aeronautics Ltd (HAL) listed at 7.3% discount on the bourses on Wednesday. The initial public officer (IPO) of India’s largest defence public sector undertaking was under-subscribed.
At 10.03am, HAL shares were trading at Rs1,169, down 5.7% from its issue price of Rs1,240. The stock touched a high and a low of Rs1,184 and Rs1,150, respectively.
The company had set a price band of Rs1,215 to Rs1,240 per share for the IPO. The issue, which closed on 20 March, saw 99% subscription. The government aimed to raise around Rs4,000 crore by selling 10.2% stake in HAL.
The company provides end-to-end business operations comprising product research, design and development, manufacturing and provision of maintenance, repair and overhaul services, covering the complete operational life of its products. Over the years, it has successfully showcased research and development (R&D) capabilities in developing military aircraft and helicopters.
As of 31 December, HAL’s order book, executable over 48 months, stood at Rs68,400 crore, which generally includes products and services to be manufactured and delivered and excludes anticipated revenues from its joint ventures and subsidiaries. While manufacturing accounts for 90% of its order book, maintenance, repair and overhaul (MRO) segment accounts for the rest.
Reliance Securities Ltd said HAL can potentially grow in the low-teens range in next 2-3 years given its current order book.