New Delhi: In its second such move with 20 days, the government has started the process of disinvestment of its 15 percent stake in Bharat Dynamics Limited (BDL) through Offer For Sale (OFS). Currently, the government holds 87.75 percent equity shares in the Hyderabad-based Defence PSU, which will go down to 72.75 percent after disinvestment.
The government has planned to sell up to 1.83 crore equity shares of the company of face value of Rs 10/- each, representing 10 percent of the total paid-up equity share capital of the company, through an offer for sale. In addition to this, up-to 91.64 lakh equity shares of the company of face value of Rs 10 each, representing 5 percent of the total paid-up equity share capital of the company will be sold through 'Oversubscription Option.' Thus a total of 15 percent equity shares of the company will be sold under the government's disinvestment process. The floor price of the offer shall be Rs 330 per equity share of the company. This information was shared by the Defence PSU in a regulatory filing to the stock exchanges.
The offer is being made on a separate window of the stock exchanges on September 8, and September 9. Only non-retail investors are allowed to place their bids on September 8 and retail investors on September 9.
Bharat Dynamics Limited (BDL) is a manufacturer of ammunitions and missile systems. It was founded in 1970 in Hyderabad, Telangana. BDL was established in the year 1970 as a manufacturing base for guided weapon systems. Starting with a pool of engineers drawn from Indian Ordnance Factories, DRDO and aerospace industries, BDL began by producing a first-generation anti-tank guided missile – the "French SS11B1." This product was a culmination of a licence agreement the government entered into with Aerospatiale. The defence PSU has three manufacturing units, located at Kanchanbagh Hyderabad (Telangana), Bhanur, Medak district of Telangana and Visakhapatnam (Andhra Pradesh). Two new units are planned at Ibrahimpatnam, Ranga Reddy district, Telangana and Amravati, Maharashtra.
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