Bengaluru– State-run Hindustan Aeronautics Ltd’s (HAL) initial public offering (IPO) opened on Friday with an aim to divest 10.2 per cent of its equity holding to raise about Rs 1,400 crore, said an official.

“Our IPO is an offer-for-sale to divest the government’s 10.2 per cent equity stake. The 5-day offer closes on March 20,” a company official told IANS here.

The defence behemoth is offering 3.41 crore equity shares of Rs 10 face value in the price band of Rs 1,215-1,240 per share. Retail investors are offered Rs 25 discount per share.

“Of the total offer, 6.68 lakh shares are reserved for subscription by our employees,” added the official.

The average cost of acquisition of equity shares by the aerospace firm is Rs 152 per share after the buyback in March 2016 and November 2017. (IANS)