HAL Plans to Increase Share Capital and Announces Big Helicopter Deal

Hindustan Aeronautics Limited (HAL) has decided to increase its authorized share capital from Rs 600 crore to Rs 700 crore. This decision was made during a board meeting on Wednesday.

The board has also proposed a final dividend of Rs 13 per equity share, each with a face value of Rs 5, for the financial year 2023-24. This represents a 260% payout. The dividend will be distributed to eligible shareholders within 30 days following approval at the Annual General Meeting (AGM). The record date for determining shareholder eligibility is set for Wednesday, 21st August 2024.

In addition, HAL announced a significant deal with the Ministry of Defence for the procurement of 156 Light Combat Helicopters (LCH), known as Prachand. The deal is valued at over Rs 45,000 crore and includes 90 helicopters for the Indian Army and 66 for the Indian Air Force. The Prachand helicopters are capable of operating in high-altitude areas like the Siachen glacier and Eastern Ladakh. They can fire a range of air-to-ground and air-to-air missiles and are designed to neutralize enemy air defense systems.

This move is part of the government’s Make in India initiative, which aims to boost self-reliance in defense manufacturing. Earlier this year, the Defence Ministry also issued a tender to HAL for 97 LCA Mark 1A fighter jets, a contract valued at over Rs 65,000 crore.