BDL OFS underbooked; Govt raises Rs 770 crore as only 2.34 cr shares subscribed

BDL OFS concluded on Wednesday with a total subscription of about 2.34 cr shares worth Rs 770 cr from institutional and retail investors. The govt had a target to generate over Rs 900 crore through the issue
BDL OFS underbooked; Govt raises Rs 770 crore as only 2.34 cr shares subscribed
  • Govt gets Rs 770 crore subscription of about 2.34 cr BDL shares through Offer for Sale

  • BDL OFS of 15% Govt shares was subscribed 1.40 times by non-retail investors on Tuesday

  • A total of 2.71 crore BDL shares were up for sale through OFS for institutional and retail investors

New Delhi: Offer for Sale of 15% Govt shares in the defence PSU Bharat Dynamics Limited (BDL) got a lukewarm response as the govt could generate only Rs 770 crore through the OFS. The govt had a target to generate a total of Rs 907 crore through the issue. BDL shares were subscribed 76% on a concluding day. The government had proposed to sell 1.83 crore shares through offer for sale, constituting 10% paid-up share capital of the company, with an option to sell an additional 91.64 lakh shares or 5% stake in case of demand. The floor price for the OFS was set at Rs 330 each with a Rs 20 discount to retail investors on cut-off price. 

The base offer of 10% share sale was subscribed 1.4 times on Tuesday, after which the government decided to exercise the 'green shoe' option to sell 5% additional shares than initially planned. Though the government failed to sell the additional 5% shares fully. On the retail day the BDL shares were subscribed only 60% taking the overall subscription to 76%.

Govt had 87.75% stake in the defence PSU. The value of BDL shares fell 13.4% to Rs 332 from Rs 384 after the govt announced share sale through OFS on Monday. The govt had planned to raise Rs 907 crore through the stake sale. Govt has a target to raise Rs 2.10 lakh crore through disinvestment in 2020-21. BDL disinvestment was next in the drive after HAL disinvestment which fetched govt Rs 5020 crore.

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