Missiles on display as aircraft perform in an aerial flying display at the Aero India air show. (Photographer: Dhiraj Singh/Bloomberg)

Bharat Dynamics IPO Subscribed 0.32 Times On First Day Of Bidding

Day 1 Subscription

  • Qualified institutional buyers: 0.50 times
  • Non-institutional bidders: 0.02 times
  • Retail investors: 0.21 times
  • Employees: 0.08 times
  • Overall: 0.32 times

Bharat Dynamics Ltd.’ Rs 960-crore initial public offering was subscribed 0.32 times on the first day of bidding today.

Of the 2.24 crore shares on offer, the sole supplier of surface-to-air and anti-tank guided missiles to the Indian Army, received bids for 72.49 lakh shares, according to stock exchange data.

The portion reserved for qualified institutional buyers was subscribed 0.50 times the number of shares on offer, while the retail investors’ portion was subscribed 0.21 times. The non-institutional segment saw muted demand at 0.02 times the number of shares allotted, showed data provided by Axis Capital as of 5 pm.

The government is looking to sell 2.24 crore shares or 12.25 percent stake in the missile maker at the upper end of the price band which has been fixed at Rs 413-428 apiece.

Bharat Dynamics, housed under the Ministry of Defence, is a Miniratna. It manufactures surface-to-air and anti-tank guided missiles, underwater weapons, launchers, counter-measures and test equipment, giving it nearly 54 percent share in India’s missile market.

The company had an order book of Rs 10,543 crore as of Jan. 31.