India's HAL set for IPO

[ashok321]

http://www.janes.com/article/64434/india-s-hal-set-for-ipo-say-reports

India's state-owned aerospace company Hindustan Aeronautics Limited (HAL) is planning to launch a long-expected initial public offering (IPO) within the next few months, media reports in India have said.

Citing official sources, reports said the Securities and Exchange Board of India (SEBI) has finally approved the IPO after agreeing to relax unspecified disclosure requirements. Neither HAL nor the government of India have confirmed the reports.

The IPO has been planned for several years, although a stumbling block has been the government's hesitancy about disclosing some of HAL's financial details and assets due to concerns over security. A source quoted by Indian media reports said that "these issues have now been resolved".

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[shah1398]

How can anyone put forward IPO of such a sensitive organisation just like that? Does HAL has separate military and civilians aircraft/systems set ups ?

The IPO has been planned for several years, although a stumbling block has been the government's hesitancy about disclosing some of HAL's financial details and assets due to concerns over security. A source quoted by Indian media reports said that "these issues have now been resolved".

Though this sheds some light on it but still.....

 

[Ali Zadi]

This is because of private players in this market. Everyone know how liable HAL is right now an IPO means a way to have a plain field shared with those players.

 

[Rajaraja Chola]

How can anyone put forward IPO of such a sensitive organisation just like that? Does HAL has separate military and civilians aircraft/systems set ups ?



Though this sheds some light on it but still.....

These are how US Companies evolved. From governmental control to private players, but still somewhat in Govt oversight with strict export control laws. This will bring businessmen's into the management who will force the company to improve issues like delay, quality control and recruitment.
Over a period of time 50% will be owned by private players. Paying more money to HAL in rupees is worth considering projects will be completed on time.

 

[GuardianRED]

These are how US Companies evolved. From governmental control to private players, but still somewhat in Govt oversight with strict export control laws. This will bring businessmen's into the management who will force the company to improve issues like delay, quality control and recruitment.
Over a period of time 50% will be owned by private players. Paying more money to HAL in rupees is worth considering projects will be completed on time.

Possible that this IPO, it will allow HAL to fund and develop projects quicker without waiting for funds from the center correct?

 

[WhyCry]

Possible that this IPO, it will allow HAL to fund and develop projects quicker without waiting for funds from the center correct?

to some extent but also have its own projects and control over its functioning. Hence, there won't be any bias based on PSU or private player. They will apply for the RFP and tenders.

 

[Rajaraja Chola]

Possible that this IPO, it will allow HAL to fund and develop projects quicker without waiting for funds from the center correct?

Technically the proceeds of the IPO will go the government as its the sole shareholder. For new projects henceforth, partners will have to shell money. But again new projects have to be approved by govt as it is the majority shareholder and it will be for the considerable future.

The visible change will be on the working style of the behemoth. New Board members wont take kindly to delays and issues of HAL hand. Quality control and utilisation of resources will be the main benefactions of this IPO. Management will change for better as their money is invested and will want better returns. I hope any financial institutions other than LIC and SBI picks up more stake in it. Aerospace companies investing in HAL will bring in conflict of interests.

 

[Stephen Cohen]

HAL management needs a few quick lessons in answering questions about
Cash Flows and EBIDTA Margins

 

[wiseone2]

How can anyone put forward IPO of such a sensitive organisation just like that? Does HAL has separate military and civilians aircraft/systems set ups ?



Though this sheds some light on it but still.....

secrecy is refugee for the incompetent

 

[Indika]

The visible change will be on the working style of the behemoth. New Board members wont take kindly to delays and issues of HAL hand. Quality control and utilisation of resources will be the main benefactions of this IPO. Management will change for better as their money is invested and will want better returns. I hope any financial institutions other than LIC and SBI picks up more stake in it. Aerospace companies investing in HAL will bring in conflict of interests.

Exactly non-govt equity holders will exact responsibility & accountability. HAL better pull up its socks or lose its pants.

 

[Rajaraja Chola]

Exactly non-govt equity holders will exact responsibility & accountability. HAL better pull up its socks or lose its pants.

Especially the private financial guys know how to extract work. Muthoot group, Chettinad, ICICI groups they can extract mileage of HAL. However we have no idea what their plans are

 

[shah1398]

These are how US Companies evolved. From governmental control to private players, but still somewhat in Govt oversight with strict export control laws. This will bring businessmen's into the management who will force the company to improve issues like delay, quality control and recruitment.
Over a period of time 50% will be owned by private players. Paying more money to HAL in rupees is worth considering projects will be completed on time.

If things are moving in that direction then rest assure those private entities wud be minting so much money out of Govt that U wud wish if HAL had been in same state as of today. L&M, Raytheon, Boeing etc are one few living examples of such companies. Nonetheless Ppl out there know what they are doing and can see what we are unable to appreciate. Good Luck.

 

[mirage]

How can anyone put forward IPO of such a sensitive organisation just like that? Does HAL has separate military and civilians aircraft/systems set ups ?



Though this sheds some light on it but still.....

sir , there is another company Bharat electronics which is manufacturing defence equipment and radars , Bharat electronics is a listed company since 1992https://en.wikipedia.org/wiki/Bharat_Electronics_Limited

 

[shah1398]

sir , there is another company Bharat electronics which is manufacturing defence equipment and radars , Bharat electronics is a listed company since 1992https://en.wikipedia.org/wiki/Bharat_Electronics_Limited

Sir I dont have much info regarding the structure and operations of BEL but what I am sure of is that it wud never have offered the factories and portions who deal with sensitive military tech to IPO. BEL wud surely also deal with civilian set ups and civilian entities of Govt on different projects.

 

[satishkumarcsc]

For everyone's Information HAL has never run into losses.