Shares of Hindustan Aeronautics (HAL) tanked 13 per cent has reported that the central government plans to divest its 15 per cent stake in the company through a public offering of shares. The shares of HAL traded at Rs 1,023.45 apiece, down 13.1 per cent from its previous close, while the benchmark Sensex was up 0.47 per cent to 39258 points. The government will sell about 10 per cent stake, with an option to sell a further 5 per cent in the company, according to a stock exchange filing. At a floor price of Rs 1,001 a share, the sale could fetch the Centre as much as Rs 5,020 crore. Retail investors will get a 5 per cent discount on the offer price. The floor price is at nearly 15 per cent discount to HAL’s closing price of Rs 1,177.80 on Wednesday.

Hindustan Aeronautics reported a fall of 1 per cent net profit to Rs 1,226 crore for the March ended quarter. Revenue rose 0.8 per cent year-on-year to Rs 10,239 crore. Along with Hindustan Aeronautics, the government also plans to sell stake in Bharat Dynamics Ltd through an offer for sale (OFS) in the second quarter of this fiscal. The government is looking to raise Rs 600-700 crore from its stake sale in Bharat Dynamics. The government holds 87.75 per cent of the company.

According to the latest shareholding data, the government of India holds 89.97 per cent in the company, whereas the public holds 10.03 per cent.