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HAL will be ready to launch IPO by end of August

Discussion in 'Indian Defence Industry' started by surya kiran, Jun 8, 2017.

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Will you invest in HAL IPO

  1. Yes

    45.5%
  2. No

    31.8%
  3. Maybe

    22.7%
  1. surya kiran

    surya kiran 2nd Lieutant FULL MEMBER

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    http://www.moneycontrol.com/news/bu...o-launch-ipo-by-end-of-august-md-2256217.html

    Speaking to CNBC-TV18, Chairman and Managing Director T Suvarna Raju said the IPO has been delayed as it required some concessions as far as putting data in the public domain was concerned.



    The long-awaited initial public offering (IPO) of Hindustan Aeronautics Limited (HAL) could finally see the light of day by the end of August, said Chairman and Managing Director T Suvarna Raju.

    Speaking to CNBC-TV18, Raju said the IPO of the state-owned aerospace and defence company has been delayed as it required some concessions as far as putting data in the public domain was concerned.

    "We will have to wait till the results of the past financial year are audited," said Raju. "We should be ready (for the IPO) by July or August."

    At the Aero India 2017 a couple of months ago, he had said progress that was made on identification of Book Running Lead Managers and preparation of draft red herring prospectus and that necessary documents were in place.

    Reports have long suggested that the company plans to divest 10% of its shareholding and go public, but it has been delayed for various reasons.
     
  2. MilSpec

    MilSpec Mod Staff Member MODERATOR

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  3. Hellfire

    Hellfire Devil's Advocate THINKER

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    Nope.

    Walchand nagar maybe looked at.
     
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  4. surya kiran

    surya kiran 2nd Lieutant FULL MEMBER

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    Any views on who else could manufacture guns?
     
  5. zebra7

    zebra7 Captain FULL MEMBER

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    I will invest in HAL IPO as a long term investment, and forgot for atleast 1-1.5 decades. HAL have the potential to become one of the biggest Aerospace company in the world, but needs to invest in the Public transportation zone starting from the indigenous public transport airliner. NAL needs to be merged with the HAL.
     
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  6. Guynextdoor

    Guynextdoor Lt. Colonel SENIOR MEMBER

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    Not a bad idea. HAL may not be a good innovator but will lobby to win as much of govt contract as possible. With planned spending on defense going high, this presents good profit opportunity.
     
  7. rockstar

    rockstar 2nd Lieutant FULL MEMBER

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    will try
     
  8. Sancho

    Sancho Lt. Colonel Technical Analyst

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    At this point, there is actually not much speaking for an investment into HAL. The government is basically doing everything, to make the situation bad for them.

    RTA70 and MTA cancelled
    Avro replacement gone to privat industry
    FGFA in question
    MMRCA canceled, SE given to privat industry
    Pushed to divert own work in parts to privat industry
    And last but not least the SPM, which diverts major aerospace work away from HAL for decades!

    So what's left for HAL to increase it's value?
    Helicopters, the never ending LCA story and HTT40?

    Also if only 10% will be made available, no major investor will come in, since there is no value to give the company a certain direction or incentive right?

    So what am I missing guys, where is the scope of HAL under the NDA rule?


    P.S. If there is a dedicated thread about Indian shares, please let me know, I'm interested to learn.
     
  9. MilSpec

    MilSpec Mod Staff Member MODERATOR

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    MKI Overhaul and upgrades.
    ALH+LCH+Overhaul
    HTT40
    Mig29UPG
    rd33MK eng
    LCAmk1P
    LUH + Kamov
    MRT- Helo

    Book orders are solid for then next 10 years.
     
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  10. Sancho

    Sancho Lt. Colonel Technical Analyst

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    Mig 29 UPG is done and the few engines for the navy (if they remain with the Migs) doesn't make much profit either. Same goes for all the overhaul options you mentioned. Only new products and potential larger orders will get actual profits and apart from LCA, Ka226/LUH and HTT40, there is not much in the near future. With this government, I wouldn't even rule put AMCA going to a private player, if the government decides to hold a competition for an SP as well. So personally, I would be cautious with HAL and wait what the government has in mind for the PSUs after the SPM has started.
     
  11. Anish

    Anish BANNED BANNED

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    HAL has value. Govt needs funds. Govt will sell HAL in small slabs to raise funds.

    In a few years when Tata Advanced Systems or Mahindra or Reliance or L&T or XYZ have decent defence orders with them then one could possibly buy a strategic stake in HAL.

    HAL has value in terms of maintainence contracts, assembly facilities, general facilities, testing laboratories, somewhat skilled engineers.

    Orders will come in the future also in terms of assembly of Russian equipment.
    Ka-226 order is there.
    Tejas saga will continue.
    Su30Mki assembly and follow on orders.
    Chance of bagging Gripen/F-16 assembly order.

    Russians seem to avoid Indian private sector.

    GOI should not shut down HAL rather sell it slowly while DRDO and other departments withdraw their national security projects from HAL.
     
  12. MilSpec

    MilSpec Mod Staff Member MODERATOR

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    Overhaul of an aircraft costs IAF almost 50-70% of the cost of the aircraft, almost 90% of aircraft's do not need new parts. It's all labor and shop time with minimal material. You calculate the margin.
     
  13. MilSpec

    MilSpec Mod Staff Member MODERATOR

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    Wtf did I just read. Are you out of your mind?
     
  14. surya kiran

    surya kiran 2nd Lieutant FULL MEMBER

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    Mazaa agaya!!!!! Thank you:biggthumpup::butt-kisser-smiley
     

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