Last Updated: September 13, 2024, 13:44 IST
Hindustan Aeronautics Ltd. or HAL shares gained over a percent in trade on September 13 after reports suggested the public sector defense player could be the next to a ‘Maharatna’ PSU.
According to CNBC-TV18, HAL could be upgraded to ‘Navratna’ to ‘Maharatna’ by the end of this year.
This would impart greater operational and financial autonomy to the HAL’s board, allowing it to make project investments up to Rs 5,000 crore without seeking government approval. A Navratna, on the other hand, is permitted to make autonomous project investments up to Rs 1,000 crore only.
HAL is currently a “Navratna” PSU.
Oil India is the last company to have been accorded the “Maharatna” status by the government, when it was given this status in August last year.
India currently has 13 “Maharatna” PSUs like BHEL, BPCL, Coal India, GAIL, HPCL, Indian Oil, NTPC, ONGC, Power Grid, SAIL, Oil India, REC and PFC.
A Maharatna PSU can also undertake merger and acquisitions in India and abroad. They can also offer competitive financing in their sector.
Shares of Hindustan Aeronautics are currently off the day’s high, trading at the flat line at Rs 4,649. The stock has currently declined by 18 per cent from its all-time high of Rs 5,674, which it had hit in July.
Despite this correction, the stock has risen 65 per cent so far in 2024.
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