Govt proposes to sell 3.5 pc stake in Hindustan Aeronautics Ltd
Mumbai: India is preparing to sell up to a 3.5% stake in Hindustan Aeronautics Ltd, a state-run aerospace and defence company, which could yield the government Rs 2,867 crore, Reuters reported citing an exchange filing on Wednesday.
Till now, the government has raised Rs 31,110 crore by selling shares in state-owned firms, falling short of its target of Rs 50,000 crore for the current fiscal year that ends on March 31.
The Indian government is facing the possibility of missing its divestment target for the fiscal year 2022/23, as it intends to suspend the partial sale of its stake in Hindustan Zinc (HZL), unless the company cancels its proposed $3 billion acquisition of two subsidiaries of Vedanta Group.
Divesting shares in state-owned companies is a crucial revenue-raising strategy that allows the government to allocate funds towards infrastructure development.