The state-owned company in the defence space is all set to hit the primary market with its IPO issue on March 13.
Issue details: The offer for sale is an attempt of the government to reduce 12% stake in the company by offloading 2.25 crore equity shares with a face value of Rs. 10 each. The expected issue is likely to fetch the government of India a sum of Rs. 960 crore.
The shares shall be available at a price band of Rs. 413- Rs. 428 per share. The minimum subscription can be made for 35 shares and in multiples of 35 shares thereafter. For the employee and retail subscription, the discount of Rs. 10 per share will be offered.
Company profile: After Bharat Electronics, Bharat Dynamics shall be the second company to be listed on the exchanges. The defence equipment manufacturer engages in manufacturing anti-tank guided missiles, launchers, countermeasures, test equipment for Indian Army.
The company includes 3 manufacturing facilities and plans to set up two more units near Hyderabad and one in Maharashtra.
Also, the defence manufacturer exports lightweighted torpedoes and in future wish to export countermeasure dispensing system and Akash SAM.
The company is among some four PSUs that the government has targeted to divest in the FY18.
Financials: The revenue of the company stood at Rs. 4832.7 crore which provided the company with net profits of Rs. 490.3 crore for the financial year 2016-17.