Shares of Bharat Dynamics slumped more than 13% to Rs 332.85 on NSE Tuesday, as the government’s 15% stake sale in the company via offer for sale (OFS) route opened for non-retail investors today.
The two-day share sale, which opened today, is part of the government’s ambitious divestment target of Rs 2.1 trillion for this fiscal.
The floor price for the OFS has been fixed at Rs 330 per share, a 14% discount to Monday’s closing price of Rs 385.
The government is planning to sell 15% stake in the defence company today (September 8), and tomorrow. The Centre, through President of India, owns 87.75% stake in the company and is looking to offload 27.1 million shares.
The President of India, acting through and represented by the Department of Defence Production, Ministry of Defence, Government of India, is the promoter of Bharat Dynamics.
The stock of Bharat Dynamics has corrected nearly 31% from its all-time high level of Rs 481.70, touched on August 14, 2020 on the NSE. It hit a 52-week low of Rs 145.30 in intra-day trade on March 24, 2020.
Last month, the government had sold 15% stake in aerospace and defence company Hindustan Aeronautics to raise about Rs 5,000-crore.
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