After the government began its two-day offer for sale (OFS) process on Thursday, shares of Hindustan Aeronautics (HAL) increased by around 6%. The share price decreased 5.72 percent to a low of Rs 2,475, which was broadly in line with the issue’s floor price of Rs 2,450 per share.
A brief about HAL shares drop 6% as the two-day OFS begins; 3% of the issue has been subscribed to thus far
The floor price was 6.6% less than the closing price on Wednesday.
By 9.30 am, the issue had received bids for 1,361 shares out of the total issue size of 5,266,603 shares at an indicative price of Rs 2,458.40 each, or a 3 percent subscription rate.
According to the floor price, the Centre was trying to sell up to 3.5% of its ownership in the aerospace and defense PSU company, which would bring in Rs 2,867 crore. Only non-retail investors may put bids on Thursday. If the retail category remains oversubscribed, these investors might indicate when placing their bids that they are ready to carry on their unallotted offers to T+1 day for allocation to them.
Retail investors are eligible to receive 10% of the total offer amount, provided that they submit legally binding bids. Based on the floor price, the stock exchanges will choose the number of shares that can be taken into account in the retail category.
The government proposes to sell up to 1.75 percent (58,51,782) equity shares of the company with a face value of Rs 10 each on March 23 (for non-retail investors only) and on March 24 (for retail investors and non-retail investors who choose to carry forward their un-allotted bids with an option to additionally sell 1.75 percent (58,51,781) equity shares), according to the company’s regulatory filing.
From 9:15 am until 3:30 pm, the offer is being made in a different window of the stock markets.