Hindustan Aeronautics OFS sees strong demand, oversubscribed 4.5 times
MUMBAI : The government’s offer for sale (OFS) of a part of its stake in Hindustan Aeronautics Ltd, saw a strong demand from non-retail investors and was subscribed 4.5 times, according to data from the NSE on Thursday.
It received bids for 237.6 lakh shares, while 52.6 lakh shares were on offer. The indicative price for the bids was ₹2,468.98, higher than the floor price of ₹2,450 per share.
As a result of the strong demand, the government will exercise its green shoe option for an additional 58.5 lakh shares, bringing the total offer size to 117 lakh shares. Retail investors will be able to bid for the shares on Friday.
“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,” said DIPAM secretary Tuhin Kanta Pandey in a Twitter post on Thursday.
Despite the positive response to the sale, shares of Hindustan Aeronautics closed 4.9% lower at ₹2,496.35 apiece on the NSE. As of 31 December 2022, the government held a 75.15% stake in Hindustan Aeronautics. The current market cap of the company stands at ₹83,475 crore.
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Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.