New Delhi, Aug 27 (IANS): The offer for sale (OFS) of Hindustan Aeronautics Ltd (HAL) was oversubscribed 1.6 times by non-retail investors on Thursday and following the development, the government has decided to exercise the "green shoe" option.

Green shoe refers to the option of over-allotment of shares.

A tweet from the Twitter handle of the Secretary of Department of Investment and Public Asset Management (DIPAM) said that retail investors will now get chance to bid on Friday with a discount of 5 per cent on the cut off price.

"Offer for Sale of 15 per cent government shares in HAL got enthusiastic response on day one and was subscribed 1.60 times by non-retail investors. The government has decided to exercise the green shoe option. Retail investors get chance to bid on 28.08.20 with a discount of 5 per cent on the cut off price," it said.

On Wednesday HAL said that Centre will sell a stake of about 10 per cent, with an option to sell a further 5 per cent in the company through OFS.

The floor price for the offer was set at shall be Rs 1,001 per equity share of the company.

The Central government will fetch around Rs 5,020 crore in case of over-subscription, at the floor price of Rs 1,001 per share.