The Indian Government has proposed to sell up to 15% equity shares of Hindustan Aeronautics Limited (HAL).
According to a stock exchange filing, the seller is the President of India acting through the Department of Defence Production, Ministry of Defence, Government of India.
The 10% or 33,438,750 equity shares of HAL have been proposed to be sold at a face value of Rs10 each. This forms the Base Offer Size and is for non-retail investors bidding only.
The proposal includes an oversubscription option to additionally sell 5% or 16,719,375 equity shares of the company.
Retail investors and non-retail investors who choose to carry forward their un-allotted bids can participate in this option.
The floor price for the offer shall be Rs1,001 per equity share of the company. It could fetch as much as $680m, reported Bloomberg.
The sale will raise funds expected to fill a fiscal deficit caused due to the current economic conditions.
The government has also launched Atmanirbhar Bharat initiative in the defence sector to make India self-reliant and increase defence manufacturing in the country.
Prime Minister Narendra Modi has also announced that the government has decided to permit up to 74% FDI in the defence manufacturing.
Earlier this month, the Indian Government decided to stop importing more than 100 items worth $47bn used by its armed forces over the past five years.