Hindustan Aeronautics IPO to Hit Market in Second Half of 2014-15: Report

The Department of Disinvestment (DoD) is working on launching the equity sale of Hindustan Aeronautics Ltd in the second half of the current fiscal year (2014-15), according to a government official.
 
This will be the first IPO of a state-owned firm after a gap of at least two-and-a-half years.
 
"We are working on the DRHP (draft red herring prospectus) for HAL. We plan to file it with Sebi by September," the official told PTI.
 
The initial share sale offer to offload a 10 per cent stake in the state-run defence equipment maker is expected to hit the markets only in the second half of the current fiscal year that ending on March 31, 2015.
 
HAL's initial public offer would be the first such government share sale since April 2012 when the government came out with that of NBCC.
 
In November 2012, the Cabinet had approved offloading a 10 per cent stake, or 1.20 crore equity shares, in HAL through an IPO. The government has already appointed four merchant bankers - SBI Cap, Goldman Sachs, Barclays and Axis Capital - for managing the stake sale.
 
A Navaratna company, HAL provides maintenance and overhaul services of aircrafts.
 
It had a paid-up capital of Rs 120.50 crore, comprising 12.05 crore shares of face value of Rs 10 each at the end of March 2011.
 
At present, the company is fully-owned by the government.
 
The stake sale in HAL will help the government move towards the disinvestment target of Rs 36,925 crore in 2014-15. 
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