Bharat Dynamics Closes Nearly 9% Below IPO Price After Stock Market Debut
Bharat Dynamics Ltd., that made its stock market debut today, closed at a discount of nearly 9 percent over its issue price of Rs 428. The stock had begun trading at a discount of 16 percent at Rs 360 apiece on the National Stock Exchange. It later pared some losses to end at Rs 397.
The missile maker’s Rs 960-crore initial public offering was subscribed 1.26 times on the last day of its bidding. The portion reserved for qualified institutional buyers was subscribed 1.50 times the number of shares on offer, while the retail investor portion was subscribed 1.29 times. The non-institutional segment was bid for 0.50 times the number of shares allotted, showed data provided by Axis Capital.
The government sold its 12.25 percent stake in the company in the three-day offer, at the upper end of the price band which was fixed at Rs 413-428 apiece.
Bharat Dynamics is the sole supplier of surface-to-air and anti-tank guided missiles to the Indian Army. It has a nearly 54 percent share in India’s missile market. The Hyderabad-based company has facilities in Bhanur and Visakhapatnam. It’s setting up two more in Maharashtra and Telangana.
The company had an order book of Rs 10,543 crore as of Jan. 31. According to ICICI Direct, the missile maker is likely to receive orders worth up to Rs 25,000 crore for long- and medium-range surface-to-air missiles and very short-range air defence missiles in the next five years.