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Government approves 10 percent disinvestment of HAL

Posted on Nov 08, 02:52PM | IANS

The government Thursday approved disinvestment of 10 percent equity stake in Hindustan Aeronautics Limited (HAL) through an initial public offer (IPO).

The decision was taken by the cabinet committee on economic affairs (CCEA) at its meeting held here.

Currently, the government holds 100 percent equity of the company, which has a paid up capital of Rs.120.50 crore.

"Five percent discount on the issue price will be allowed for retail investors as well as to eligible employees of HAL applying under the employees reservation portion," the CCEA said in a statement.

HAL is a schedule-A Navratna company which comes under central public sector enterprises and is administered by the defence ministry.

The company is engaged in designing and development of aircraft like fighter planes, trainer jets and air transporters. HAL also manufacturers choppers and avionics for both military and civil applications.