The Cabinet Committee on Economic Affairs (CCEA) Thursday approved to disinvest 10 percent equity in Hindustan Aeronautics Limited (HAL) out of its holding of 100 percent through an Initial Public Offer (IPO) in the domestic market as per the Securities and Exchange Board of India (SEBI) rules and regulations.
According to sources, government is mulling to gradually disinvest from its some Navratna companies, in which HAL is one of them.
HAL is a Schedule - 'A', Navratna Central Public Sector Enterprise under the administrative control of the Ministry of Defence.
In this move, Cabinet committee has given its nod to dilute 10% government shares through issuing IPO.
Five percent discount on the issue price will be allowed for retail investors as well as to eligible employees of HAL applying under the employees reservation portion.
The paid up equity capital of the company, as on March 31, 2012 is Rs.120.50 crore. Currently, the company is unlisted.
After the divestment of 10 percent, Government of India's shareholding in the company would come down to 90 percent.
It is engaged in the designing and development of Fixed Wing Aircraft, Rotary Wing Aircraft and their systems/accessories/avionics, manufacturing of Aircraft (Fighter, Trainers and Transport), Helicopter and associated aero engines, accessories and avionics for both military and civil applications.
--With ANI Inputs--
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