The Government proposes to launch an initial public offering of Bangalore-based Central Public Sector Undertaking, Hindustan Aeronautics Ltd within this fiscal year. If it happens, this will be the third public offering in the disinvestment programme, after Power Grid and Engineers India during this fiscal.

Requires consultation Shivani Singh, Director with the Department of Disinvestment, said that a lot of consultation is required with the Defence Ministry (the Administrative Ministry for the company). “We are targeting (the IPO) for this fiscal end,” she said.

The Government intends to sell 10 per cent of its equity in the company, which was approved by the Cabinet Committee on Economic Affairs on November 8, 2012.

HAL is a ‘Navratna’ category company. It is engaged in the designing and development of fixed wing aircraft, rotary wing aircraft and their systems, accessories and avionics, manufacturing of aircraft (fighter, trainers and transport), helicopter and associated aero engines, accessories and avionics for both military and civil applications.

Meanwhile, the follow-on public offering of Engineers India received subdued response on the first day. The issue is open till February 10 and bids can be made in the price range of ₹145 and ₹150.

The Government, however, is optimistic about successful completion of the EIL FPO. Sangita Choure, Joint Secretary with the Department of Disinvestment, said it is a continuous dividend giving company, while AK Purwaha, Chairman and Managing Director of the company pointed out that EIL is a debt-free company.

EIL is now eyeing a global footprint; hence, it is targeting new areas in West Asia, South East Asia, Africa and Latin America. The Government aims to offload 10 per cent of its holding totalling 3.37 crore shares.

However, investors (retail, high networth individuals and institutions) showed little enthusiasm for the shares on Day 1. Details available on the NSE website show bids were made for just 0.02 per cent or 6.84 lakh shares till 5 p.m. on both the exchanges (BSE and NSE). Maximum bids were made at the cut off price of ₹150.

The Government expects to mop up ₹500 crore from the EIL stake sale.