The two-day Offer For Sale (OFS) will open for institutional investors and for retail buyers
NEW-DELHI: The Shares of Hindustan Aeronautics Ltd (HAL) on Thursday slipped more than 5% to ?2,475 on the BSE after the government launched offer for sale (OFS) to sell 3.5% stake in HAL. The OFS was initiated at a floor price of ?2,450 per share. The government owns a 75.15% stake in HAL which is a Central Public Sector Enterprises (CPSE) under the Defence Ministry.
The company on Wednesday said that the government is planning to sell up to 3.5% stake in aerospace and defence company this week in a deal that could avail the government benefit of Rs 2,867 crore. The government plans to sell a 1.75% stake on March 23-24, and has the option to sell 1.75% more stake if required.
About OFS....
The two-day Offer For Sale (OFS) will open for institutional investors and for retail buyers. The Offer for sale comprises of base issue size of 1.75% or 58.51 lakh shares.
In a regulatory filing, HAL said, "In the event the oversubscription option is exercised, the equity shares forming part of the base offer size and the oversubscription option will represent 3.50 per cent (1,17,03,563) equity shares of the company."
The filing said, "The offer may be cancelled by the government if it fails to get sufficient demand at or above the floor price, or if there is a default in the settlement obligation, or on post bidding, if there is not enough sufficient demand from non-retail investors at or above the floor price on T day."
About Share Market.....
The share market is a platform where buyers and sellers come together to trade on publicly listed shares during specific hours of the day. The principal stock exchanges in India are the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). When a company registers itself for the first time at the stock exchange to raise funds through shares, it enters the primary market. This is called an Initial Public Offering (IPO), after which the company becomes publicly registered and its shares can be traded within market participants.
When a company’s new securities have been sold in the primary market once, they are then traded on the secondary stock market. Here, investors get the opportunity to buy and sell the shares among themselves at the prevailing market prices.
