Hindustan Aeronautics Limited (HAL) is a Defence Public Sector Undertakings (DPSU) company. The company is engaged in the design, development, manufacture, repair, overhaul, upgrade and servicing of a wide range of products including, aircraft, helicopters, aero-engines, avionics, accessories and aerospace structures. HAL was conferred the ‘Navratna’ status by Government of India (GoI) in June 2007, which gave it the strategic and operational autonomy to make prompt investment decisions.
HAL is the 39th largest aerospace company in the world in terms of revenue. Its operations are organised into five complexes - the Bangalore Complex, MiG Complex, Helicopter Complex, Accessories Complex, and Design Complex, including 20 production divisions and 11 research and design centres located across India. In addition to this, HAL has entered into 13 commercial joint ventures to grow its operations. It has a sustained track record of profitability and has paid dividends to its stakeholders every year for over four decades.
- Rs. 4144.06 crore to Rs. 4229.33 crore; Issue of 3, 41, 07,516 equity shares;
Fresh Issue – Nil, offer for sale – 3, 41, 07,516 equity shares - 12 Equity Shares and in multiple thereafter
- QIB - 50% NIB - 15% Retail - 35%
- Rs. 10
- ASBA mandatory (No cheques will be accepted)
- Proposed to be listed on BSE and NSE
- SBI Capital Markets Ltd and Axis Capital Ltd
- Karvy Computershare Private Limited
- Long credible history of research, design and development, manufacturing and maintenance,
repair and overhaul services - Established track record in offering product life cycle support extending to periods beyond four decades
- Strong design and development capabilities
- Leadership position in the Indian aeronautical industry and strong GoI support
- Diversified product portfolio- the range of products as fighter aircraft, trainer aircraft,
transport aircraft, military helicopter and civil helicopters and their engines, avionics and accessories - Experienced management team and operating team
The offer comprises of an offer for sale by the President of India, acting through the department of defence production, Ministry of Defence and Government of India
I.To carry out the disinvestment of 34,107,525 equity shares by the selling shareholder which constitutes 10% of the company’s pre-offer paid up equity share capital
II.To achieve the benefits of listing the equity shares on the stock exchanges.
An initial public offering (IPO)/public issue is when an unlisted company makes either a fresh issue of securities or an offer for sale of its existing securities or both for the first time to the public. This paves the way for listing and trading of the issuer’s securities.
The shares are initially issued in the primary market at an offering price determined by the lead manager(s)/the merchant banker(s) to the IPO.
The primary market consists of a syndicate of investment banks and broker dealers that the lead managers assemble and that allocate shares to institutional, high net worth individuals (HNI) and individual/retail investors.
As far as IPOs are concerned, a price band is a value-setting method whereby a seller indicates an upper and lower cost range, between which the buyers/investors are able to place their bids. The price band's floor and cap provide guidance to the buyers.
It is up to the company to decide on the IPO price or the price band, in consultation with the lead managers.
The basis of IPO price is disclosed in the offer document. The issuer is required to disclose in detail about the qualitative and quantitative factors justifying the IPO price.
The IPO price is normally based on such factors as the company’s financials, products and services, income stream as well as the demand for the shares and current market conditions.
The lead managers must determine a fair offering price, which takes into consideration the need for the company to raise capital while offering the new issue at a price which represents a fair value of the shares.
A Red Herring Prospectus (RHP) is a document submitted by a company (issuer) as part of a public offering or an IPO of securities (either stocks or bonds).
A retail individual investor means an investor who applies or bids for securities of or for a value of not more than Rs 2,00,000.
Yes. He can bid in a book-built IPO for a value not more than Rs 2,00,000. Any bid made in excess of this will be considered in the HNI category.
Yes. Investors can change or revise the quantity or price in the bid using the form for changing/revising the bid that is available along with the application form. However, the entire process of changing or revising the bids shall be completed before the IPO closes.
In case of fixed price issues, investors are intimated about the CAN/Refund order within 10 days of the closure of the IPO.
In case of book built IPOs, the basis of allotment is finalised by the book-running lead managers within two weeks from the closure of the issue. The registrar then ensures that the demat credit or refund as applicable is completed within 6 working days of the closure of the issue.
In the case of book-built issues, the exchanges (Bombay Stock Exchange/National Stock Exchange) display the data regarding the bids obtained (on a consolidated basis between both these exchanges).
The data regarding the bids is also available category-wise.
Investors are entitled to receive a Confirmatory Allotment Note (CAN) in case they have been allotted shares within 6 working days from the closure of a book Built issue. The registrar has to ensure that the demat credit or refund as applicable is completed within 6 working days of the closure of the book-built issue.
The lead managers also publish an advertisement at least in an English national daily with wide circulation, one Hindi national paper and a regional language daily circulated at the place where registered office of the issuer company is situated.
The listing on the stock exchanges is done within seven days from the finalisation of the issue.
Ideally, it would be around three weeks after the closure of the book-built issue.
In case of fixed price issue, it would be around 10 days after closure of the issue.