Govt plans to sell part of its stake in HAL

The government has recently got the approval to divest 10 per cent of its stake in the aerospace company, Hindustan Aeronautics Limited (HAL).

“The Cabinet Committee on Economic Affairs has approved the divestment of 10 per cent equity, out of the government’s 100 per cent holding in HAL, through an initial public offering (IPO) in the domestic market, according to SEBI (Securities and Exchange Board of India) rules and regulations,” said an official statement.

The proposal to disinvest some of its stake in HAL is aimed at funding the government’s plans to modernise the company, for which Rs 200 billion would be required through the next five years.