Hindustan Aeronautics shares slip 5% in trade after #govt launches OFS (offer for sale) to sell a maximum of 3.5% stake in the co at a floor price of Rs 2,450/sh. The base size of the offer is 1.75% with an additional option to sell another 1.75%. The government currently holds a 75.15% stake in the company.
At 1:00 PM, shares of HAL were down 4.7% or Rs 123 at Rs 2,500. The stock hit a day’s low of Rs 2,475 in the morning trade.
The OFS opens today for non-retail investors and for retail investors, the offer will open on March 24. The floor price of the offer stands at a 6.6% discount to Tuesday’s close of 2,624.80.
Brokerages like Morgan Stanely and Nuvama released notes, and believe that the offer could increase free float of the stock. Morgan Stanley said that the size of the HAL OFS is less than market expectations of > 5% & it removes an overhang.