HAL looks grounded

about 4 years ago
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HAL is currently the top loser on the BSE. It fell almost 13% to hit an intraday low at Rs.1026.70; it has recouped a bit but remains firmly in the red a Rs.1033 levels, down 12.5%.

The stock is down after the Govt yesterday announced that it plans to divest up to 15% stake in HAL through an offer for sale (OFS).

It plans to raise Rs.5020 crore by selling 3.34 crore shares, which is 10% stake to institutional and retail investors, which it did yesterday and will continue on to today.

In case of oversubscription, a further 5% stake or 1.67 crore shares would be offered.

The main bone of contention for the market – the floor price is at a 15% discount at Rs.1001 v/s yesterday’s close of Rs.1177.75.

Currently the Govt holds a 89.97% stake.

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