The Cabinet Committee
on Economic Affairs has approved to divest 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.
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 31st March, 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.
HAL is a Schedule – ‘A’, Navratna Central Public Sector Enterprise under
the administrative control of the Ministry of Defence. 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