The IPO (initial Public offering) of the Hyderabad-based state-owned missile and weapon manufacturer Bharat Dynamics Ltd (BDL) opened today, 13 March 2018, for the subscription. Bharat Dynamics is expected to raise about Rs 961 crore at the upper end of the price band of Rs 428 per equity share. The initial share sale market is heating up as around five companies are scheduled to launch their respective public offers in a span of next 10 days. The public issue of Bharat Dynamics will remain open for subscription for three days starting today up until 15 March 2018.
We bring to you an 11-point cheat-sheet about Rs 961 crore public issue
- Bharat Dynamics has set a price band of Rs 413 to Rs 428 per equity share of face value Rs 10 and is expected to raise about Rs 960.94 crore from the initial share sale.
- The IPO of Bharat Dynamics is a part of Modi government’s ambitious disinvestment program of Rs 72,500 crore for the financial year 2017-2018.
- Bharat Dynamics is offering a discount of Rs 10 per equity share for eligible employees and retail investors.
- The IPO will remain open for three days from 13 to 15 March and the bids can be made in a market lot size of 35 equity shares and in multiples of 35 equity shares thereafter.
- The floor price is 41.3 times the face value and the cap price is 42.8 times the face value while the P/E (price/earnings) ratio at the upper end of the price band of Rs 428 is 19.84 times.
- The IPO of Bharat Dynamics doesn’t contain a fresh issue of equity shares as the promoter, the President of India, acting through Ministry of Defence, the government of India holds 100% stake in the company which selling about 22,451,953 equity shares through an offer for sale route.
- Bharat Dynamics is one of the defence PSUs in India based headquartered in Hyderabad engaged in the manufacturing of surface to air missiles (SAMs), anti-tank guided missiles (ATGMs), underwater weapons, launchers, countermeasures and test equipment which supplies to the Indian armed forces.
- Bharat Dynamics is a wholly-owned government of India company under the administrative control of the Ministry of Defence, GoI founded in 1970.
- For Rs 961 crore public issue of Bharat Dynamics, the book leading managers are SBI Capital Markets Ltd, IDBI Capital Markets & Securities and Yes Securities (India) while Alankit Assignments Ltd id the registrar to the issue.
- The objectives of the public offer are to carry out the disinvestment of equity shares by the government of India. Bharat Dynamics is not entitled to receive any proceeds from the IPO and all the proceeds will go to the selling shareholder.
- At the end of 30 September 2017, Bharat Dynamics held total assets worth Rs 8,284.97 crore. The shares of Bharat Dynamics are proposed to be listed on NSE and BSE.