Govt proposes to sell up to 3.5% stake in defence firm HAL

So far, the government has mopped up 311.1 billion rupees by selling its shares in state-run firms as against its target of 500 billion rupees for the financial year ending March 31.

The floor price for the HAL stake sale is set at 2,450 rupees apiece, at a discount of 6.7% to Wednesday's close. (File)

The Government is planning to sell up to 3.5% stake in aerospace and defence company Hindustan Aeronautics Ltd this week in a deal that could fetch 28.67 billion rupees ($347.16 million), an exchange filing showed on Wednesday.

So far, the government has mopped up 311.1 billion rupees by selling its shares in state-run firms as against its target of 500 billion rupees for the financial year ending March 31.

The government stares at missing its divestment target for 2022/23 as it plans to put on hold the part sale of its stake in Hindustan Zinc (HZL) unless the company calls off the nearly $3 billion cash acquisition of two Vedanta Group subsidiaries.

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The floor price for the HAL stake sale is set at 2,450 rupees apiece, at a discount of 6.7% to Wednesday’s close.

The government owns a 75.15% stake in HAL, according to Refinitiv Eikon.

The government plans to sell a 1.75% stake on March 23-24, and has the option to sell 1.75% more stake if needed.

Divestments in state-owned firms is a key revenue-raising measure that helps government to spend on infrastructure-building.