Sunday, October 01, 2017

Govt to dilute 10% stake in military plane maker HAL

Bengaluru: The government has approved sale of 10% stake in public sector military plane maker Hindustan Aeronautics Ltd through an initial public offer. This, at a time when it is witnessing competition from private players such as Reliance Defence, Adani and Tata Group who are bidding to bag fighter plane contracts for the Indian armed forces.

The Bengaluru-based HAL has filed its draft Red Herring Prospectus (DHRP) with market regulator Securities and Exchange Board of India (Sebi) on September 29, the firm said in a statement on Sunday.

So far, HAL has been the sole player in the country building fighter aircraft such as Sukhoi-30-MkI and the Hawk advanced jet trainers under licensed production and helicopters such as Dhruv advanced light helicopter which it has designed in-house. It also is the designated agency to produce Tejas, the homegrown light combat aircraft for the air force.

In September, HAL chairman and managing director T Suvarna Raju said the company has an order book of Rs 41,000 crore which is "very low for an aeronautical industry." It has orders to make 35 Su-30-MkI planes and 40 Tejas aircraft, while awaiting confirmation of a follow on order for 83 Tejas planes.
01/10/17 Reghu Krishnan/Business Standard
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