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HAL Increases Capital To Rs 700 Cr, Announces Rs 13 Dividend Per Share

BW Online Bureau Jun 27, 2024

This will necessitate an alteration of the capital clause in the company's Memorandum of Association, pending shareholder approval at the Annual General Meeting (AGM)

To support future growth and development, Hindustan Aeronautics Limited's (HAL) board meeting has recommended an increase in the authorised share capital of the company from Rs 600 crore to Rs 700 crore, on Wednesday.

According to HAL, the board has proposed a final dividend of Rs 13 per equity share, each with a face value of Rs 5, marking a substantial 260 per cent payout for the financial year 2023-24.

This will necessitate an alteration of the capital clause in the company's Memorandum of Association, pending shareholder approval at the Annual General Meeting (AGM).

This dividend is slated for distribution to eligible shareholders within 30 days following approval at the AGM. The record date for determining shareholder eligibility is set for Wednesday, 21st August 2024.

The decisions were made in line with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

These decisions are set to be presented for shareholder approval at the upcoming AGM.

On June 17, HAL announced that the Ministry of Defence had issued a Request for Proposal (RFP) for the procurement of 156 Light Combat Helicopters (LCH), also known as the Prachand.

The deal, worth over Rs45,000 crore, includes 90 helicopters for the Indian Army (IA) and 66 for the Indian Air Force (IAF).

The Prachand is renowned for its capability to operate in high-altitude areas like the Siachen glacier and Eastern Ladakh, being the only attack helicopter globally that can land and take off at an altitude of 5,000 metres (16,400 feet).

It is equipped to fire a range of air-to-ground and air-to-air missiles and is adept at neutralising enemy air defence systems.

This move aligns with the government's ongoing efforts to boost self-reliance in defence manufacturing under the Make in India initiative, part of the broader Atmanirbhar Bharat vision.

The emphasis on indigenous production is evident as the Defence Ministry has also issued a tender to HAL in April this year for 97 LCA Mark 1A fighter jets, a contract valued at over Rs 65,000 crore. (ANI)