An additional 1.75% stake in Hindustan Aeronautics Ltd., amounting to 58.52 lakh shares, will be up for sale on Friday.
It will be open to retail investors as well, as the government has decided to exercise the greenshoe option, the DIPAM secretary tweeted.
The Union government's offer for the sale of a 1.75% stake in Hindustan Aeronautics saw a good response on Thursday, as the issue was subscribed 4.5 times the base size, the Department of Investment and Public Asset Management said.
In a regulatory filing on Wednesday, the government notified that it proposed to sell 1.75% of a stake on Thursday to non-retail investors only and an additional 1.75% of a stake on Friday, in case the 'oversubscription option' or the green shoe option is exercised. With this, 3.5% of the government's stake in the aerospace company will be up for sale.
“Offer for Sale of Govt shares in HAL got great response on day one. Issue subscribed 4.5 times of base size at a clearing price above the floor price by non- retail investors. Govt has decided to exercise the green shoe option. Retail investors get chance to bid tomorrow.” pic.twitter.com/Pbk20L7zaD
The stake sale is valued at Rs 2,867 crore and the government has set a floor price of Rs 2,450 apiece, which is at a 6.6% discount from its current share price.
After exercising the green-shoe option fully to sell 3.5% stake, the government's stake in the company will decline to 71.6%.
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