New Delhi: The government has begun the process for the disinvestment of 15 percent stake in state-run HAL (Hindustan Aeronautics Limited), a notification posted on the DIPAM (Department of Investment and Public Asset Management) showed. The notification sought to engage merchant bankers and selling brokers.
The GoI intends to disinvest 15 percent paid-up equity capital of HAL out of its shareholding of 89.97 percent, through Offer for Sale (OFS) method of shares by promoters through the stock exchanges as per Securities and Exchange Board of India (SEBI} Rules and Regulations, the notification said. The government currently holds 89.97 percent stake in HAL.
HAL disinvestment: Govt mulls allotting shares to employees
The government is also considering allotting shares to eligible and willing employees of HAL at a discount to the issue/ discovered price (lowest cut off price) up to a maximum of certain percentage of the OFS size subsequent to the completion of the transaction under OFS. The percentage and extent shall be decided in due course, the notification said.
The news comes as the government is running against time to reach as close to its target of raising Rs 1.05 lakh crore via disinvestment before the close of the ongoing financial year as possible. Even though the Cabinet has given its in-principle nod to the disinvestment of BPCL, Shipping Corporation of India and CONCOR, it looks unlikely that the deals will be closed before March 31. The government has already invited Expression of Interest (EoI) for the sale of Air India but it looks unlike that the sale will be concluded before the end of FY20.
HAL authorised capital is Rs 600 cr
The authorised share capital of the company is Rs 600 crore and the paid-up equity capital is Rs 334.39 crore as on March 31, 2019. The government holds 89.97 percent of the equity of HAL. The face value of each equity share is Rs 10.
Profit after Tax for fiscal 2018-19 is Rs 2,282 crore for HAL as on March 31, 2019. It has a net worth of Rs 10,848 crore.