Hindustan Aeronautics to invest about Rs 17,500 cr over 5-6 yrs

Hindustan Aeronautics to invest about Rs 17,500 cr over 5-6 yrs

FPJ BureauUpdated: Thursday, May 30, 2019, 09:11 AM IST
article-image
(L to R) Secretary Defence Production, Ashok Kumar Gupta; Hindustan Aeronautics Ltd, Chairman, T Suvarna Raju and Samtel Group,Chairman,Satish Kaura, at AeroIndia 2017. |

Bengaluru: Hindustan Aeronautics (HAL) said its overall investment over the next five to six years is expected to be about Rs 17,500 crore, and it may go for loans from banks soon to fund its projects.

The company also said it has contributed over Rs 5,000 crore to the government exchequer through the buyback option.
“…we will be happy if we get more funds, but we will present the case. Not waiting for two or three years till CCS sanctions to meet the current expectations and requirements, we are funding from our own reserves,” HAL Chairman and Managing Director T Suvarna Raju told reporters.

Responding to a question at the Aero India 2017 air show here, he said that during the month of March, maybe they are going to take loan from the banks for their projects. Raju also applauded Samtel HAL JV’s efforts for Make in India at an event.

“Overall expected investment as of now, approximately is Rs 17,500 crore, spread over five to six years,” he added. On disinvestment activity of the company based on the government approval of 10 per cent of the shareholding in 2013, Raju said progress has been made in this regard with the identification of Book Running Lead Managers and preparation of draft red herring prospectus. Necessary documents are in place.

“…10 per cent of the equity capital that is 3.615 crore of equity at the face value of Rs 10 would be considered for the IPO, the valuation will be done by the BRLMS and the other financial experts. We are awaiting for the valuations from them,” a senior company official added. Responding to a question about when the company will be filing red herring prospectus with SEBI, Raju said by the end of this financial year.

Raju also said the option of buyback of 25 per cent of share capital and reserves of the company has been executed through which the company has contributed over Rs 5,000 crore to the government exchequer.

RECENT STORIES

Game-Changing Alliance: Ambani's Reliance Ventures Into Adani's Power For The First Time; Acquires...

Game-Changing Alliance: Ambani's Reliance Ventures Into Adani's Power For The First Time; Acquires...

SRM Contractors IPO Subscribed 86.57 Times On Last Day Of Bidding

SRM Contractors IPO Subscribed 86.57 Times On Last Day Of Bidding

Tax-Saving Tip From Zerodha CEO Nithin Kamath: 'If You're Married And Hindu..."; Here's How To Save...

Tax-Saving Tip From Zerodha CEO Nithin Kamath: 'If You're Married And Hindu...

Holy Cities Like Ayodhya, Varanasi Attracting Big Retail Brands: Report

Holy Cities Like Ayodhya, Varanasi Attracting Big Retail Brands: Report

A Big Relief For Byjus's: NCLT Rejects Investor Plea To Stay Byju's Rights Issue EGM On March 29...

A Big Relief For Byjus's: NCLT Rejects Investor Plea To Stay Byju's Rights Issue EGM On March 29...