-0.6 C
New York
Sunday, March 7, 2021

Bharat Dynamics OFS subscribed 76% on last day

Must read

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

- Advertisement -

Latest article

Swiss look set to approve ban on facial coverings

World2 minutes ago (Mar 07, 2021 08:40AM ET) ...

Iran frees British-Iranian aid worker Zaghari-Ratcliffe, says lawyer

World7 minutes ago (Mar 07, 2021 08:35AM ET) ...

Day trading guide for Monday

NIFTY OUTLOOK Chandan Taparia, MOFSL: The Nifty 50 index made a gap-down opening on account of weak global cues, as bulls seemed to have lost strength,...