Sunday, November 10, 2024
Home News Hindustan Aeronautics tumbles 6% on pricing OFS at discount

Hindustan Aeronautics tumbles 6% on pricing OFS at discount

 

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.

 

 

RELATED ARTICLES

Markets end FY23 in style; Sensex Nifty rally nearly 2% on firm global trends

Market, The final day of the fiscal year 2022-23 saw gains for benchmark indices, with a gain of nearly 2% on Friday, extending gains for...

Day trading guide for today: 6 stocks to buy or sell on Friday — 31st March

Trading, Day trading guide for today: Indian shares gained on Wednesday as global markets' increased risk appetite was aided by easing in the banking industry....

Financial, IT stocks aid Indian shares snap three-month losing streak

Financial, By Bharat Rajeshwaran BENGALURU (Reuters) - Indian shares rose on Friday, supported by a higher weighting of financial stocks and information technology (IT) stocks,...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

SIGNUP & GET $10000 BONUS

Most Popular

Trading the Inside Bar Pattern on Pocket Option Platform

Inside Bar Pattern Introduction Price movement on a chart is examined in price action trading. You may use candlesticks to predict where prices will move...

“Unlocking the Secrets: 4 Tricks of Successful Traders on Pocket Option Platform”

For a year, I have been trading on the Pocket Option platform. I sometimes succeed and sometimes fail. However, I was confident that if...

Identifying Mistakes That Lead to Losses on Pocket Option

Why do people lose their money when trading binary options New traders frequently take a significant financial risk while trading binary options. As a result,...

Weekly Income Plan on Pocket Option Platform”

Get weekly returns on Pocket Option It turned out that October was a terrific month for me. I am still able to generate money every...

Recent Comments