India is planning to sell up to 3.5 per cent stake in aerospace and defence company Hindustan Aeronautics Ltd this week in a deal that could fetch the government Rs 2,867 crore ($347.16 million), an exchange filing showed on Wednesday.
So far, the government has mopped up Rs 31,110 crore by selling its shares in state-run firms as against its target of Rs 50,000 crore for the financial year ending March 31.
The Indian government stares at missing its divestment target for 2022/23 as it plans to put on hold the part sale of its stake in Hindustan Zinc (HZL) unless the company calls off the nearly Rs 24,776 crore cash acquisition of two Vedanta Group subsidiaries.
The floor price for the HAL stake sale is set at Rs 2,450 apiece, at a discount of 6.7 per cent to Wednesday's close.
The government owns a 75.15 per cent stake in HAL, according to Refinitiv Eikon.
The government plans to sell a 1.75 per cent stake on March 23-24, and has the option to sell 1.75 per cent more stake if needed.
Divestments in state-owned firms is a key revenue-raising measure that helps government to spend on infrastructure-building.
($1 = 82.6100 Indian rupees)
Published 22 March 2023, 12:23 IST