Bharat Dynamics gets OFS shot

Bharat Dynamics is a big loser on the BSE since the opening bell. It opened 12% lower at Rs.338.10 and went down further to Rs.332.40, down 13.5% where it is currently trading.

The stock is down as the Govt yesterday declared an Offer for Sale (OFS) in the PSU.

The Govt plans to sell 15% stake for non-retail investors today and the floor price for the OFS is at Rs.330/share, which was at a huge 14% discount to yesterday’s close of Rs.385.

Tomorrow, retail investors and un-allotted non-retail Investors who choose to carry forward their bids can bid.

The Govt has an option to additionally sell 9.16 million equity shares, which is 5% of total issued and paid up equity share capital of the company.

Recently the Govt sold 15% stake in HAL via an OFS at a price of Rs.1001 and it continues to trade much below that price at Rs.894 levels currently.