The Telegraph
Monday , May 26 , 2014
CIMA Gallary

Selloff plan for HAL in the works

New Delhi, May 25 (PTI): The disinvestment department is working on launching the equity sale of Hindustan Aeronautics Ltd (HAL) in the second half of the current fiscal, which will be the first IPO of a state-owned firm after a gap of at least two-and-a-half years.

“We are working on the DRHP (draft red herring prospectus) for HAL. We plan to file it with Sebi by September,” a government official said.

The initial share sale offer to offload a 10 per cent stake in the state-run defence equipment maker is expected to hit the markets only in the second half of the current fiscal.

The initial public offer of HAL will be the first such government share sale since April 2012 when it came out with the IPO of NBCC.

In November 2012, the cabinet had approved offloading a 10 per cent stake, or 1.20 crore equity shares, in HAL through an IPO.

The government has already appointed four merchant bankers — SBI Cap, Goldman Sachs, Barclays and Axis Capital — to manage the stake sale.