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The ₹4,200-crore initial public offering of Hindustan Aeronautics just managed to pull through, thanks to institutional investors.
As against the issue size of 3.41 crore shares, the PSU major received bids for 3.37 crore shares, by subscribing 0.99 times or 100 per cent.
The IPO, which opened on March 16 in a price band of ₹1,215-1,240, closed on Tuesday.
The government, which diluted 10.2 per cent stake through the IPO, has reserved over 6.68 lakh shares for employees. Retail investors will get shares at a discount of ₹25 a share.
The portion reserved for qualified institutional buyers were covered fully. Against the offer for 1.671 crore shares, the portion received 100 per cent response.
However, the portion reserved for high net worth individuals received bids for just 24 per cent. Shares set aside for retail investors got response to the tune of 46 per cent. Employees of HAL also were not keen to subscribe. The portion reserved for staff received bids for just 26 per cent.
The aerospace company is engaged in design, development, manufacturing and other services of aircraft, helicopters, aero-engines, avionics, accessories and aerospace structures.
The stake-sale is through an offer-for-sale by the Centre, the entire amount raised through the issue will go to the government. It is a part of the Centre’s 2017-18 divestment programme for which the target had been revised to ₹80,000 crore from ₹72,500 crore stated earlier in the Union Budget.
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