On June 27, Hindustan Aeronautics Limited (HAL) shares rose 2% amid a board meeting to deliberate a proposal to split the company’s equity shares and a dividend reference.

The board of directors will consider the recommendation of the final dividend for FY22-23 in its meeting, which is programmed to be held on June 27, 2023. Further, the business will also deliberate a suggestion for a sub-division of equity shares of HAL.

At 9:36 am, the stock rose 1.3% to Rs 3746.75 on the BSE.
Besides, the stock has been excluded from the Future & Options (F&O) ban list. Due to its futures and options contracts surpassing the open interest caps, the stock was postponed from trading on June 26.

HAL is supported by a vigorous order backlog of about Rs 82,000 crore and a strong order pipeline of over Rs 150,000 crore in the long term.

The firm is in advanced talks for potential export partnerships and alliances with countries such as the Philippines, Argentina, Egypt, Sri Lanka, Maldives, Botswana, Thailand, and Nigeria, which will improve the long-term growth prospects of HAL. Moreover, the government’s focus on the ‘Make in India’ initiative and tumbling dependency on imports bodes well for a domestic player like HAL.