Bengaluru: Public sector defence behemoth Hindustan Aeronautics (HAL) is planning to divest 10% of its shareholding and go public with an initial public offering (IPO) next financial year. The company plans to offer 36.1 million equity shares to the public at a face value of R10 per share. However, the final value of the shares will be ascertained after the valuation of the company, which is currently going on, a top company official said.
“We have government approval for divesting 10% shareholding. We have already firmed up our plans to go public. The draft red herring prospectus is ready and book running lead managers have been appointed. The valuation of the company is currently taking place and the issue price will be fixed thereafter,” HAL chairman T Suvarna Raju told reporters at Aero India 2017 in Bengaluru on Wednesday.
As part of its disinvestment process for 2015-16, the government has bought back 25% shares in HAL valued at R5,265 crore including tax. The government sold 120.5 million equity shares in the company.
In January last year, the government had asked cash-rich public sector companies to consider the buyback option or pay higher dividends to meet the shortfall in its revenues. HAL, which has a huge amount of cash reserves, has paid R750-crore dividend to the government for FY16.
16/02/17 Mahesh Kulkarni/Financial Express
To Read the News in full at Source, Click the Headline
“We have government approval for divesting 10% shareholding. We have already firmed up our plans to go public. The draft red herring prospectus is ready and book running lead managers have been appointed. The valuation of the company is currently taking place and the issue price will be fixed thereafter,” HAL chairman T Suvarna Raju told reporters at Aero India 2017 in Bengaluru on Wednesday.
As part of its disinvestment process for 2015-16, the government has bought back 25% shares in HAL valued at R5,265 crore including tax. The government sold 120.5 million equity shares in the company.
In January last year, the government had asked cash-rich public sector companies to consider the buyback option or pay higher dividends to meet the shortfall in its revenues. HAL, which has a huge amount of cash reserves, has paid R750-crore dividend to the government for FY16.
16/02/17 Mahesh Kulkarni/Financial Express
0 comments:
Post a Comment