The Department of Public Enterprises has announced that the Ministry of Finance has granted the company 'Maharatna' status. HAL is now the 14th company in the nation to be a part of this exclusive group, thanks to this upgrade. The inter-ministerial committee has previously approved this proposal.
With an annual turnover of Rs 28,162 crore and a profit of Rs 7,595 crore for the financial year 2023–24, HAL is a Central Public Sector Enterprise (CPSE) under the Department of Defense Production.
In India's defense industry, the company is a major participant. This development may have a positive effect on Monda's stock.
The stock performance
In last trading session, the shares of HAL ( Hindustan Aeronautics ltd) saw a declining move of 0.94 per cent amounting to a Rs 42.25 in the negative territory.
The HAL concluded the last trading session in the 2nd week of the month of October at Rs 4,440 per share on the NSE (National Stock Exchange).
The stock price has risen over 22 per cent in the last 6 months, propelling the stock price from Rs 3,638.10 to Rs 4,440 per share on the national stock exchange.
Hon’ble Finance Minister has approved the upgradation of Hindustan Aeronautics Limited (HAL) to 14th #Maharatna CPSE. The proposal has earlier been recommended by Inter-Ministerial Committee (IMC) headed by Finance Secretary and Apex Committee headed by Cabinet Secretary. HAL is… pic.twitter.com/xBR18okU74
— Department of Public Enterprises (@DPE_GoI) October 12, 2024
Perks of maharatna status
Government control over decisions in the public sector is substantial, necessitating that company boards obtain government approval at every turn. This often causes projects to move more slowly.
Companies that perform exceptionally well are granted special status by the government in an effort to lessen these difficulties. Companies get certain rights in relation to investments and other areas with each tier.
These groups, called "Ratnas," are based on the performance of the companies; they can be categorized as Miniratna, Navratna, or Maharatna.
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Other Public companies having Maharatna status
Maharatna status has also been awarded to BHEL, BPCL, Coal India, GAIL, HPCL, Indian Oil, NTPC, ONGC, Power Grid, Steel Authority of India Limited, Oil India, and PFC in addition to HAL.