Centre nets ₹770 crore through divestment in Bharat Dynamics

Our Bureau New Delhi | Updated on September 09, 2020

Bharat Dynamics is Central public sector enterprise under the Defence Ministry

It’s the government’s first divestment of the current fiscal

The Centre on Wednesday managed to complete its first divestment of the current fiscal by selling a part of its stake in ammunitions and missile systems manufacturer Bharat Dynamics Ltd.

“BDL OFS (offer for sale) concluded today with total subscription of about 2.34 crore shares worth ₹770 cr from institutional and retail investors,” Secretary, DIPAM (Department of Investment and Public Asset Management), said in a tweet. This issue will help the company achieve minimum public shareholding norms which prescribe that at least 25 per cent of shareholding should be with non-promoters or public. Prior to the OFS, the Centre had 87.75 per cent of total shares, which will now come down to 75 per cent.

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

The government kept the base offer size of over 1.83 crore share representing 10 per cent of holding, while there was proposal to exercise green shoe option of 91.64 lakh shares or 5 per cent of holding. The floor price was ₹330 a share.

Retail investor sand employees will get a discount of ₹20 per share; 5 per cent of shares over and above this offer may be offered to employees.

Published on September 09, 2020

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