IPO Update: Bharat Dynamics IPO to hit markets next week
Defence public sector company Bharat Dynamics Limited (BDL) ventures into the stock market next week with its pure offer of sale (OFS) offer which may fetch the Government of India Rs. 600 crore.
The Initial Public Offering (IPO) consists of 22,451,953 equity shares of Bharat Dynamics Limited of face value of Rs. 10 each at the price band of Rs. 413 to Rs. 428 per share. The government is also offering an employee discount and retail discount of Rs. 10 per share. The minimum bid lot is 35 equity shares and in multiples of 35 thereafter. The IPO opens for subscription on March 13 and closes on March 15, 2018.
This IPO is part of government’s divestment plan. The listing will provide the company more visibility and enable the company gain listing benefits.
Bharat Dynamics Limited is India's leading defence PSUs. The company is engaged in the manufacture of missiles including Surface to Air missiles, Anti-Tank Guided missiles, underwater weapons, launchers, countermeasures and test equipment. The company is the only maker of missiles, torpedoes for the Indian armed forces. It also provides refurbishment and maintains of missiles, the company also partners with DRDO.
The company is based in Hyderabad and was conferred the mini-ratna (Category -1) status by the government. As of October 31, 2017, the company's order book was Rs. 11,164 crore. Major products in current order book include the Akash Weapon System and other missiles.