Shares of Hindustan Aeronautics Limited rose on Monday after getting the “Maharatna” status.

What Happened: HAL was awarded “Maharatna” status by the Department of Public Enterprises after securing permission from Finance Minister Nirmala Sitharaman on Saturday.

HAL became the 14th central public sector enterprise (CPSE) to get the status. To be eligible for the Maharatna status, a company needs to meet financial requirements such as ₹25,000 crore average turnover, ₹15,000 crore average annual net worth and ₹5000 crore annual net profit in the last three years.

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The status gives companies greater financial autonomy to make capital expenditures for new purchases and replacements without restrictions. The company can invest up to ₹5,000 crore in foreign ventures without government approval and invest 15% of its net worth in projects.

BHEL, BPCL, Coal India, GAIL, HPCL, Indian Oil, NTPC, ONGC, Power Grid, SAIL, Oil India, REC and PFC are the other Maharatna companies in India. Oil India was the previous entrant into the club in August 2023.

Price Action: Shares of Hindustan Aeronautics rose 1.93% to ₹4,532 on Monday morning. 

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