The government’s bid to sell up to 15 per cent of its stake in Bharat Dynamics through the offer for sale (OFS) process will start on Tuesday.

Bharat Dynamics is a Central public sector enterprise under the ambit of the Defence Ministry.

The base offer size is over 1.83 crore shares, representing 10 per cent of the holding, while there is a proposal to exercise a green shoe option of 91.64 lakh shares or 5 per cent of the holding. On the basis of the floor price, the government can get little over ₹600 crore for 10 per cent and little over ₹300 crore for the green shoe option.

The floor price is 14 per cent lower than the closing price of ₹384.50 on Monday.

The plan is to allow non-retail investors (institutions) to bid on Tuesday while retail investors can bid on Wednesday. The retail investor here refers to an individual investor who places bids for offer shares of a total value of not more than ₹2,00,000, aggregated across stock exchanges. Fifteen per cent of the offer shares shall be reserved for allocation to retail investors. The retail investors and employees will get a discount of ₹20 per share. Five per cent of shares over and above this offer may be offered to employees.

This offer is being undertaken for achieving the 25 per cent of minimum public shareholding norm. As on date, the government holds 87.75 per cent of total shares in Bharat Dynamics.