New Delhi: Hindustan Aeronautics Ltd. (HAL) is on track to be upgraded to the prestigious 'Maharatna' status by the end of this year, according to recent reports. Shares of the state-owned defence manufacturer saw a rise of over one percent in trading on 13 September, following news that HAL could soon join the ranks of India's top public sector undertakings (PSUs).
Currently classified as a 'Navratna' PSU, HAL would gain significantly more operational and financial autonomy if upgraded to 'Maharatna' status. This would allow the company's board to independently approve project investments of up to ₹5,000 crore, compared to the ₹1,000 crore limit under the 'Navratna' category. This enhanced status would also give HAL the ability to undertake mergers and acquisitions, both domestically and internationally, as well as offer more competitive financing options within the defence sector.
The last company to receive 'Maharatna' status was Oil India, which was upgraded in August 2023. India currently has 13 PSUs with 'Maharatna' status, including well-known names like BHEL, BPCL, Coal India, GAIL, HPCL, Indian Oil, NTPC, ONGC, Power Grid, SAIL, REC, PFC, and Oil India.
Despite a recent correction that saw HAL shares drop 18 percent from their all-time high of ₹5,674 in July 2024, the stock has still posted a 65 percent increase so far this year. On 13 September, HAL shares were trading at ₹4,649, slightly below the day's high but reflecting continued investor confidence in the company's long-term growth prospects, especially with the potential upgrade to 'Maharatna' status on the horizon. /BI
