Hindustan Aeronautics stock falls 5% against its issue price of Rs 1,215 in trading debut on bourses
IPO of the Hindustan Aeronautics was open during 16-20 March and was subscribed 99 percent
New Delhi: Shares of Hindustan Aeronautics Ltd (HAL) made a tepid debut at the bourses today, falling more than 5 percent over its issue price of Rs 1,215.
The scrip listed at Rs 1,169, a loss of 3.78 percent on BSE. At NSE, shares of the company opened the day at Rs 1,152, falling 5.18 percent from the issue price. In terms of equity volume, 1.15 lakh shares were traded on BSE and over 9 lakh shares changed hands at NSE during the morning trade.
LISTING REVIEW: HAL (Hindustan Aeronautics)
Extremely poor response, hardly subscribed that too with bail out by LIC
Even pricing it to lower band of 1215 instead of 1240 with Rs. 25 discount to retail investors is NOT SUFFICIENT. Cost to retail is 1190 now@CNBC_Awaaz
— Anil Singhvi CNBC (@anilsinghviCNBC) March 28, 2018
The company's market valuation stood at Rs 38,969.52 crore. The IPO of the Bengaluru-based firm was open during 16-20 March and was subscribed 99 percent.
The state-owned firm's IPO was for 34,107,525 shares. The price band for the offer was fixed at Rs 1,215-1,240 per share.
The sale is part of the government’s Rs 75,000-crore divestment process, which for the first time in many years, has already crossed the target.
Hindustan Aeronautics, set up in 1940, produces over 27 types of light combat aircraft and helicopters and is the 39th largest aerospace company in the world. Acting chairman VM Chamola said HAL has an order book of over Rs 68,000 crore, which covers the next three years and had a revenue of over Rs 5,300 crore in the first half of the current fiscal, which he attributed to the seasonal factors.
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It is alleged that Bhaben Mitra, Senior Manager Finance at HAL in Odisha, in conspiracy with other employees misappropriated amounts by committing forgery of documents, siphoning off Rs 13.28 crore from the coffers of the cash-strapped PSU between 2013 and 2017.