HAL rises 2% ahead of board meet to decide dividend, share split

Shares of Hindustan Aeronautics Ltd (HAL) rose 2 percent on June 27 ahead of the board meeting to discuss a proposal to split the company’s equity shares and a dividend recommendation.

The board of directors of the public defence company will consider recommendation of final dividend for the financial year 2022-23, in its meeting which is scheduled to be held on June 27, 2023. Further, the company will also consider a proposal of sub-division of equity shares of HAL.

At 9:36 am, the stock is up 1.3 percent at Rs 3746.75 on the BSE.

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Besides, the stock has been removed from the Future & Options (F&O) ban list. Due to its futures and options contracts exceeding the open interest caps, the stock was suspended from trading on June 26.

HAL is backed by a healthy order backlog of around Rs 82,000 crore and robust order pipeline of over Rs 1,50,000 crore in the long term.

The company is in advanced talks for potential export partnerships and collaborations with countries such as Argentina, Philippines, Egypt, Sri Lanka, Maldives, Botswana, Thailand, and Nigeria which is likely to improve the long term growth prospects of HAL. Moreover, the government’s focus on the ‘Make in India’ initiative and reducing dependency on imports bodes well for a domestic player like HAL.

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