HAL Share Price Under Pressure as Government Announces OFS at Lower Price: Here's What Analysts Suggest to Do

 HAL share price under pressure as govt announce OFS at lower price

The announcement by the government to sell up to a 3.5 per cent stake in Hindustan Aeronautics Limited (HAL) at a floor price of Rs 2,450 per share has put pressure on the HAL share price. If fully subscribed, the sale would fetch about Rs 2,800 crore to the exchequer. This move has resulted in correction in the HAL share price, which was trading at life-high levels till last week. In this article, we will look at the reasons for the correction and what analysts suggest investors should do.

HAL Share Price Correction Explained

Shares of HAL, a public sector defense company, were under pressure during Thursday's session as the Street didn't appreciate the government's decision to sell a stake in the company at a price lower than Wednesday's closing. This has led to a correction in the HAL share price, which is witnessing a decline. However, the analyst believes that HAL shares are expected to show a good move amid the announcement of the government to sell some stake in the defense company.

Analysts' Suggestion to Investors

The announcement of the government to sell a stake in HAL at a lower price has created an opportunity for investors who are looking to invest in a fundamentally strong company. Analysts suggest that investors can consider buying HAL shares at the current price levels as it is expected to rebound in the near term. However, it is important to keep in mind that investing in the stock market involves risks, and investors should do their due diligence before making any investment decisions.

Conclusion

The announcement of the government to sell a stake in HAL at a lower price has put pressure on the HAL share price. However, analysts believe that this presents an opportunity for investors to buy the shares of a fundamentally strong company. It is important to keep in mind that investing in the stock market involves risks, and investors should always do their due diligence before making any investment decisions.