Mumbai: The Rs960 crore initial public offering (IPO) of public sector unit (PSU) Bharat Dynamics Ltd witnessed an overall subscription of 32% on Tuesday, the first day of the share sale, data from stock exchanges showed.
As of 5pm, the portion of shares reserved for institutional investors in the Bharat Dynamics IPO saw a subscription of 50%, while those kept aside for retail investors and high net-worth individuals (HNIs) were subscribed to the extent of 21% and 2%, respectively.
Bharat Dynamics has priced its shares in a band of Rs413-428 per share. The IPO will close on 15 March. The initial share sale of Bharat Dynamics is a pure offer for sale that will see the government selling a total of 22.45 million shares, representing a stake dilution of about 12%.
Incorporated in 1970, Bharat Dynamics is engaged in the manufacture of surface-to-air missiles (SAMs), anti-tank guided missiles, underwater weapons, launchers, and test equipment, and supplies them to the Indian armed forces.
The Hyderabad-based company has three manufacturing facilities located in Hyderabad, Bhanur and Visakhapatnam. It is also setting up two more manufacturing facilities at Ibrahimpatnam, near Hyderabad and Amravati in Maharashtra, which will be used to manufacture SAMs and very short range air defence missiles, respectively.