MUMBAI: The offer for sale (OFS) of Bharat Dynamics (BDL) was subscribed 76% on the last day of bidding. Though the base offer of 10% share sale was fully subscribed, it failed to sell the additional 5% green shoe option fully. The government will likely raise about Rs 770 crore from the BDL OFS.
Through the OFS, the government proposed to sell 1.83 crore shares, constituting 10% paid-up share capital of the company, with an option to sell an additional 91.64 lakh shares or 5% stake in case of demand. The floor price for the OFS was set at Rs 330 each with a Rs 20 discount to retail investors on cut-off price.
The non-retail portion was subscribed 1.4 times on Tuesday, resulting in the government exercising the “green shoe” option. The overall retail portion was subscribed only by 60%.
Shares of BDL have declined 18% in the last two trading sessions after the announcement of OFS. On Wednesday, the stock ended at Rs 313.
Last month the government sold 15% stake in aerospace and defence company Hindustan Aeronautics (HAL) to raise about Rs 5,000-crore. The share sales of HAL and Bharat Dynamics are part of New Delhi’s disinvestment program