In the early session on October 14, shares of the state-owned defence player Hindustan Aeronautics Ltd increased 2% higher following the PSU’s upgrading to the “Maharatna” category by the Department of Public Enterprises.

HAL now holds the status of the 14th PSU, increasing its operational and financial independence even further. Earlier in August 2023, the government awarded the ‘Maharatna’ status to Oil India. 

As a result of the evolution, India now boasts 14 “Maharatna” public sector enterprises, including well-known companies like REC, PFC, ONGC, NTPC, Indian Oil, BHEL, BPCL, Coal India, GAIL, and HPCL. 

A corporation must meet strict financial requirements in order to be granted Maharatna status: an average annual net value of more than Rs 15,000 crore, an average annual turnover exceeding Rs 25,000 crore, and an average annual net profit of more than Rs 5,000 crore during the previous three years.

PSUs with Maharatna status have more freedom to invest in capital projects, such as replacements or new purchases, without any financial restrictions. These businesses must also run on their own, without reliance on government assurances or budgetary support.

This year, the stock has increased by almost 57%. The stock has soared by around 126% during the last 12 months, more than doubling investors’ capital. By contrast, throughout this same period, the benchmark Nifty saw a 27% rally.

At 2:01 pm, the shares of Hindustan Aeronautics were trading 1.36% higher at Rs 4,507 on NSE.

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