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.

Last month, HAL announced expected plans of the order for 83 Tejas Mark 1A light combat aircraft (LCA) variant jets by Indian Air Force (IAF) to be confirmed before the end of this year.