Bharat Dynamics Ltd, the state-owned undertaking's initial public offering (IPO) opens today. The government is looking to sell a part of its stake in the missile maker to raise Rs 960 crore.
Bharat Dynamics is one of the Public Sector Units (PSU) under the Ministry of Defence. It manufactures surface-to-air and anti-tank guided missiles, underwater weapons, launchers, counter-measures and test equipment. It makes up for upto 54% share in India's missile market. (Source: Bloomberg)
Headquartered in Hyderabad, it is the only supplier of surface-to-air and anti-tank guided missiles to the Indian Army and generates almost all of its revenue from it. It has facilities in Hyderabad, Bhanur and Vishakhapatnam. It is going to set up two in Maharashtra and Telengana.
It sells products manufactured by it and trades ancillary systems along with its products. As of January 31, 2018, the company had an order book of Rs 10,543 crores, which is expected to provide it a revenue stream over the next two years. (Source: Bloomberg)
2,24,51,953 (2.24 crores) equity shares will be offered by the promoter (The President of India on behalf of ministry of defence) which is a 12.5% stake in the company at Rs 413 to 428 a piece. The offering closes on 15th of March, 2018.