Government to sell 15 per cent stake in Bharat Dynamics; stock slumps 13 per cent
State-owned defence manufacturer, Bharat Dynamics on Monday after the market hours informed the bourses that the government is planning to sell 15 per cent stake in the company. The government currently holds an 87.8 per cent stake in the company.
Under this, the government is planning to sell up to 1,83,28,125 equity shares of the company of the face value of Rs 10 each, representing 10 per cent of the total paid-up equity share capital of the company as on June 30, 2020. The government can further sell 91,64,063 equity shares, representing 10 per cent of the total paid-up equity share capital in the case of oversubscription. This leads to a total amount of Rs 907 crore, which will be raised via this offer for sale (OFS).
The floor price of the offer shall be Rs 330 per share, which is at 14 per cent discount from its previous close of Rs 384.50. This offer for sale will be open for retail investors from September 09, 2020.
As of March 31, 2020, the company has an order book of ~Rs 7,400 crore. The company is supposed to get orders worth Rs 12,000 crore this year and along with this, many other orders are being expedited too amid the ongoing pandemic situation.
Under the government’s divestment programme, the government had offloaded 15 per cent stake in Hindustan Aeronautics Limited (HAL) to raise around Rs 5,000 crore.
Today, the stock of Bharat Dynamics opened at Rs 338.10 and made an intraday low of Rs 332.60 on BSE.