The Government Proposes Selling Up To 3.5% Of HAL
- The floor price for the HAL stake sale is set at 2,450 rupees each, which is 6.7% less than the price at the end of trading on Wednesday.
- The sale of state-owned companies is a key way for the government to get more money to spend on building infrastructure.
A filing with the stock exchange showed on Wednesday that the government plans to sell up to 3.5% of aerospace and defence company Hindustan Aeronautics Ltd this week. The deal could bring in 28.67 billion rupees ($347.16 million).
So far, the government has sold its shares in state-run companies for 311,1 billion rupees, which is less than its goal of 500 billion rupees for the financial year that ends on March 31.
The government could miss its divestment goal for 2022/23 because it plans to put off selling part of its stake in Hindustan Zinc (HZL) unless the company cancels its plan to buy two Vedanta Group subsidiaries for nearly $3 billion in cash.
The floor price for the HAL stake sale is set at 2,450 rupees each, which is 6.7% less than the price at the end of trading on Wednesday.
Refinitiv Eikon says that the government has a 75.15% stake in HAL.
On March 23 and 24, the government plans to sell a 1.75% stake, and if they need to, they can sell another 1.75% stake.
The sale of state-owned companies is a key way for the government to get more money to spend on building infrastructure.
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