Current Government Shareholding in Hindustan Aeronautics Limited - An SEO-Optimized Guide
Hindustan Aeronautics Limited (HAL), one of the oldest and largest aerospace and defense manufacturers in the world, continues to undergo significant changes in its shareholding structure. This article aims to provide detailed insights into the current government shareholding situation in HAL, the upcoming offer for sale (OFS), and the implications for investors.
Current Government Shareholding in HAL
Prior to the launch of the ongoing OFS, the government of India held a substantial 75.15% stake in HAL, translating to 251,292,407 shares out of the total 334,387,500 shares.
Upcoming Offer for Sale (OFS)
The government plans to sell up to 3.5% of its shareholding in HAL via an OFS slated for March 23 and 24, 2023. This sale is expected to result in the government collecting more than Rs. 2,867 crore at a floor price of Rs. 2,450 per share, which is a 6.6% discount from the closing share price on March 22, 2023. The share price on that day was Rs. 2,623 per share, a 1.02% decline from the previous close.
Previous OFS and Stock Performance
Back in 2020, the government had sold 15% of its equity stake in HAL at Rs. 1,001 per share, raising approximately Rs. 5,000 crore through an OFS. The sale price was a 15% discount from the stock's original price. This OFS was well-subscribed, and the government holds the remaining 75.15% stake, which was listed in March 2018.
Recent OFS Subscription
The recently announced OFS of HAL received a strong response from non-retail investors, as it was subscribed 2.26 times in the first day of the issue on March 23, 2023. This subscription ratio indicates investor confidence in the company and its future prospects.
Implication of Reduced Shareholding
The government's move to reduce its stake is aligning with the obligations of listed companies to bring their holding below 75%. This structured divestment exemplifies the government's commitment to corporate governance and market participation norms.
HAL Share Analysis
The performance and prospects of HAL have been a key focus for analysts and investors alike. The stock score of HAL improved by 1 in a month, changing from 8 to 9 on March 5, 2023, primarily due to an improvement in the Earnings and Price Momentum component scores.
Sales and Forecasts
According to analyst forecasts, HAL Share Price is expected to reach a median price target of Rs. 3,125.5 in the next 12 months. The high estimate for the share price is Rs. 3,550, while the low estimate is Rs. 1,930. This projection highlights the optimistic outlook for the stock and its potential growth prospects.
Conclusion
The upcoming OFS and the reduced governmental shareholding in HAL are significant milestones for the company. They signify an active market presence and a strategic shift towards more public ownership. As investors, it is crucial to monitor the ongoing developments and take informed decisions based on the rigorous analysis and forecast provided by financial analysts.