Share prices of Bharat Dynamics plunged over 13 per cent on Tuesday as the government announced to sell up to 15 per cent stake in the PSU via offer for sale (OFS) route opened for non-retail investors. The floor price for the sale has been fixed at Rs 330 per share.
With the help of the OFS, which is scheduled for September 8 and 9, the Centre plans to raise nearly Rs 907 crore, the company said in a regulatory filing.
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The announcement led to a drastic plunge in company’s shares on the benchmarks. On the BSE, it was trading at Rs 332.55, down by Rs 51.95 or 13.51 per cent.
Similarly, on the NSE, it was trading down by 13.47 per cent or Rs 51.80 at Rs 332.65 from its previous close.
Currently, the government holds 87.75 per cent of company’s stake through the President of India. And it plans to sell nearly Rs 2.75 crore equity shares.
The OFS includes Rs 1.83 crore shares in its base offer and another Rs 91 lakh shares in case of oversubscription taking the total shares on offer to 15 per cent of the outstanding equity shares of the company, more than Rs 2.74 crore shares, the filing added.
“The Promoter proposes to sell up to 18.33 million equity shares of the Company on September 8, 2020, (for non-retail investors only) and on September 9, 2020 (for retail investors and for un-allotted non-retail Investors who choose to carry forward their bids) with an option to additionally sell 9.16 million equity shares (representing 5 per cent of the total issued and paid up equity share capital of the company),” Bharat Dynamics said in a exchange filing said onMonday evening.
This is part of the government’s disinvestment plans in the current fiscal. Last month the government sold a stake in Hindustan Aeronautics through OFS.
