Bharat Dynamics makes weak debut; lists 16% below issue price

The stock listed at Rs 360, a 16% below against its issue price of Rs 428 per share on the BSE

Bharat Dynamics made a weak debut by listing at Rs 360, a 16% below against its issue price of Rs 428 per share on the BSE. On the National Stock Exchange (NSE), the stock opened at Rs 370.

A discount of Rs 10 on the offer price was offered to the retail individual bidders.

At 10:04 am; Bharat Dynamics was trading at Rs 396, a 10% higher from its opening level on the BSE after hitting a high of Rs 403 post its listing. The S&P BSE Sensex was down 1.1% at 32,636 points. A combined 1.31 million shares changed hands on the counter on the BSE and NSE so far.

The initial public offer (IPO) of the defence company that concluded last week was subscribed 1.3 times. The price band for the issue had been fixed at Rs 413 to Rs 428 per share.

The qualified institutional buyers (QIBs) category of the IPO was subscribed1.5 times and retail individual investors (RIIs) category was subscribed 1.41 times, while non institutional investor’s category was under-subscribed 0.50 times.

Bharat Dynamics is the first missile manufacturer in India to list its stock. The company is one of the leading defence PSUs in India engaged in the manufacture of Surface to Air Missiles (SAM), Anti-Tank Guided Missiles (ATGM), underwater weapons, launchers, countermeasures and test equipment. As this is an offer for sale by the government of India, the entire proceeds from the IPO will add to the divestment kitty.

As on 31st January, 2018, Bharat Dynamics had an order book of Rs 105.4 billion, of which export order book is around 2-3%. With this handful of orders, the company would keep its production lines busy for the next two years.