HAL IPO opens on March 16

India's aircraft maker Hindustan Aeronautics Limited (HAL) will list on the equity market through its Initial Public Offer (IPO) of Rs. 4,200 crore.

The IPO opens on March 16 and closes on March 20, 2018. The price band for the issue is Rs. 1,215 to Rs 1,240 per share. Also, the company is offering a discount of Rs. 25 per share to employees and retail investors. The offer constitutes 10 per cent of the post-offer paid-up equity share capital, wherein the Government of India is divesting its stake. The IPO offers 34,107,525 equity shares of Rs. 10 face value. Of the total offer 50 per cent will be available for Qualified Institutional Buyers (QIB) and 5 per cent of the QIB will be available to mutual funds.

HAL designs, develops and manufactures a range of aircraft, helicopters, engines, navigation and communication equipment and accessories for military and civil use. The company also provide maintenance, repair service and upgrade services. In aircraft, the company manufactures Sukhoi Su-30 MKI, Dornier 228 and LCA Tejas. The company also builds Cheetal and LCH helicopters and variants of Dhruv helicopter. The company has 20 production facilities and 11 R&D centres. It also operates through 13 commercial joint ventures.

The company's primary customers are the Indian Defence Forces. It also exports to Afghanistan, Nepal, Ecuador, Mauritius, Maldives, Namibia, Suriname and Seychelles. The company's exports in FY2017, 2016, 2015 were Rs. 4,650 million, Rs. 4,461 million and Rs. 4,941 million, respectively. Exports for the six-month period ended September 30, 2017 was Rs. 1,542 million.