Shares of Hindustan Aeronautics (HAL) climbed nearly 6 per cent in Thursday's trade after the government kicked off its two-day offer for sale (OFS) process. The scrip fell 5.72 per cent to hit a low of Rs 2,475, which was largely in line with the Rs 2,450 per share floor price set for the issue.
The floor price stood at 6.6 per cent discount to Wednesday's closing price.
By 9.30 am, the issue was subscribed 3 per cent, receiving bids for 1,361 shares against the issue size of 5,266,603 shares at an indicative price of Rs 2,458.40 apiece.
The Centre was looking to sell up to 3.5 per cent stake in aerospace and defence PSU firm, which would fetch it Rs 2,867 crore, based at the floor price. On Thursday, only the non-retail investors can place their bids. These investors, while placing their bids, can flag their willingness to carry forward their un-allotted bids to T+1 day for allocation to them in case the retail category stays unsubscribed.
About 10 per cent of the offer size is reserved for retail investors subject to the receipt of valid bids. The stock exchanges will decide the number of shares eligible to be considered in the retail category based on the floor price.
The company in its regulatory filing said: "The government proposes to sell up to 1.75 per cent (58,51,782) equity shares of the face value of Rs 10 each of the company, on March 23 (for non-retail Investors only) and on March 24 (for retail investors and non-retail investors who choose to carry forward their un-allotted bids with an option to additionally sell 1.75 per cent (58,51,781) equity shares."
The offer is taking place on a separate window of the stock exchanges from 9:15 am to 3:30 pm.
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