Shares of Hindustan Aeronautics (HAL) fell 6 per cent to Rs 2,475 in intra-day trade on Thursday after the government priced the offer for sale (OFS) below Wednesday’s closing price.
The government on Wednesday announced its plan to sell up to 3.5 per cent stake in the aerospace and defense company through OFS to raise over Rs 2,867 crore. The Center holds 75 per cent stake in HAL.
The 3.5 per cent stake sale included 1.75 per cent set as a base offer and 1.75 per cent as an additional option. This offer will open from March 23 to March 24, 2023. The floor price for the OFS was set at Rs 2,450 per equity share, which was at a discount of 6.7 per cent to the previous closing price.
At 09:25 am, the stock was trading 5.4 per cent lower at Rs 2,483 on BSE with around 46,000 shares traded so far. Meanwhile, the S&P BSE Sensex closed at 57,943, down 0.5 per cent.
Back in 2020, the government had sold its 15 per cent equity stake in the company at Rs 1,001 per share to raise around Rs 5,000 crore through OFS. Read more
HAL is primarily engaged in the design, development, manufacture, repair and overhaul of aircraft, helicopters, engines and associated systems such as avionics, components and accessories serving the Indian defense programme.
Earlier this month, the Union Cabinet approved the procurement of 70 Hindustan Turbo Trainer-40 (HTT-40) trainer aircraft from HAL on March 01, 2023 at a cost of over Rs 6,800 crore. The aircraft will be supplied over a period of six years.
For the quarter ended December 2022, the company had reported a 23 per cent jump in net profit at Rs 115.40 crore as compared to Rs 93.76 crore in Q3FY21. Total income increased by 1.2 percent year-on-year to Rs.616.28 crore from Rs.608.85 crore.
technical visualization
Bias: Negative
Target: Rs 2,366
Support: Rs 2,475
Resistance: Rs 2,566, Rs 2,588, Rs 2,695
After staying above the 20-DMA (Daily Moving Average) for more than a month, HAL has once again slipped below the short-term moving average in the last four trading sessions.
Currently, the stock is trading below the 20-, 50- and 100-DMAs at Rs 2,695, Rs 2,566 and Rs 2,588 respectively. Hence, till the time the stock fails to cross these hurdles, the near term bias is likely to remain negative.
On the downside, the daily chart indicates that the stock has found support near the lower end of the Bollinger Bands at Rs 2,475, below which the stock may test its 200-DMA at the Rs 2,366-odd level.
