Defence firm Hindustan Aeronautics has hit the IPO Street. HAL is a 100 percent government held Navratna Company and the largest defence public sector undertakings in terms of value of production.
M Chamola, Officiating CMD, HAL in an interview to CNBC-TV18 shared the details about their expansion plans. The company currently has 20 production units and 11 research and development center, he said.
Talking about Greenfield, brownfield expansions, he said a new facility to manufacture light combat helicopter (LCH) will be coming up near Bengaluru and enhance manufacturing capacity from 8 to 16 helicopters.
He said the government plans to dilute 10 percent through IPO and therefore the proceeds will go to them.
They will be manufacturing light combat aircraft (LCA) which will strengthen its business prospects of the company, said Chamola.
The issue is available at a price band of Rs 1215-1240 and has an issues size is Rs 4113-4198 crore for. Post the issue the implied market cap of the company would be at Rs 40,628-41464 crore.
Talking about capacity expansion, he said it will be around Rs 1300 crore annually and Rs 5000 crore cummulatively over the next five years.
Chamola said the current orderbook for the company stands at Rs 68000 crore and 90 percent of the orders for the company are from defence, while 10 percent are civil orders. Going forward around Rs 60,000 crore orders are expected.
By: Money Control
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