Hindustan Aeronautics Ltd., a Navratna Public Sector Undertaking, will open its Initial Public Offering (IPO) on March 16, 2018, at a price band of ₹1,215 to ₹1,240 per equity share of face value of ₹10 each, top company officials and merchant bankers said.
The IPO is an offer of sale by the President of India acting through the Department of Defence Production of Government of India. At the upper price band, the issue size is estimated at ₹4,229 crore and all the money will go to the government exchequer.
The IPO is of 3,41,07,525 equity shares, out of which 6,68,775 equity shares have been reserved for employees. The offer constitutes 10.20% of the post offer paid up equity share capital of the company. Retail individual investors and eligible employees will get a discount of ₹25 per share. Bids can be made for a minimum lot of 12 equity shares and in multiples of 12 thereafter. The issue will close on March 20, 2018.
The company which is into 77 years of operation, is profitable and has been paying dividend for the last 40 years. For the financial year 2017 the company reported net profit of ₹2,624 crore on revenues of ₹17,951 crore. For the six months ended September 30, 2017 the company reported a net profit of ₹391 crore on revenues of ₹5,172 crore.
Over 90% of the revenue of the company comes from Indian defence customers which include Indian Navy, Indian Air Force, Army and Coast Guard. The company has order in hand of ₹68,460 crore.
