The defence firm Hindustan Aeronautics (HAL) made its debut today on NSE and BSE. The scrip got listed at Rs 1,169 on BSE which is a 3.8% discount on the issue price and Rs 1,152 on NSE, down by 5.19%.
In the company's IPO conducted last week, it failed to get completely subscribed. Although aimed to raise Rs 4,200 crore, it managed to raise only Rs 4,088 crores in its three-day offering.
LIC Comes to the Rescue
The Life Insurance Corporation (LIC) has bought over two-thirds of the shares in HAL's initial public offering after remaining unsubscribed to a large extent on the third day due to a mute in demand from non-institutional and retail investors.
According to disclosures submitted to the stock exchange, 2.34 crore shares were allotted to the government-owned insurer for Rs 2,844 crore. That makes up for 70% of the IPO size.
HAL is India's largest state-owned defence firm. It is in the business of manufacturing aircraft, helicopters and aero engines including its development and repairs. The Indian Army is its biggest client.