“The Finance Minister has approved the upgradation of Hindustan Aeronautics Limited (HAL) to 14th Maharatna CPSE,” the Department of Public Enterprises announced in a social media post on X. The proposal had previously been recommended by both the Inter-Ministerial Committee (IMC), chaired by the Finance Secretary and the Apex Committee, led by the Cabinet Secretary.
HAL, a Department of Defence Production (DoDP) CPSE, reported an annual turnover of Rs 28,162 crore and a net profit of Rs 7,595 crore for FY 2023-24.
To qualify for Maharatna status, a CPSE must meet six key criteria, including holding Navratna status, being listed on the Indian stock exchange with the minimum public shareholding as per SEBI regulations, and having an average annual turnover exceeding Rs 20,000 crore, a net worth of more than Rs 10,000 crore, and a net profit of more than Rs 2,500 crore over the last three years. The CPSE must also have a significant global presence or international operations.With Maharatna status, HAL gains increased operational and financial autonomy. This allows it to invest up to 15% of its net worth in projects and up to Rs 5,000 crore in foreign ventures without government approval. This provides HAL greater flexibility for mergers, acquisitions, and capital expenditures, free from many restrictions applied to lower-tier PSUs.This upgrade positions HAL among India’s top public sector enterprises, enhancing its role in the country’s economic and industrial growth while reducing its reliance on government support.
HAL shares have surged 57% in 2024 to date and 275% over the past two years, with the company currently holding a market capitalization of Rs 2,97,394 crore.
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