Bharat Dynamics makes poor market debut, lists at 13.5% discount
The Rs 960 crore IPO, which concluded last week, was subscribed 1.3 times.
Updated: Mar 23, 2018, 05.05 PM IST
NEW DELHI: Defence equipment maker Bharat Dynamics on Friday made an unimpressive market debut as the scrip got listed at Rs 370 on the NSE, a 13.55 per cent discount to the issue price of Rs 428.
The Rs 960 crore IPO, which concluded last week, was subscribed 1.3 times. The price band was fixed at Rs 413-428 per share.
The company is the manufacturer of anti-tank guided missiles (ATGMs) and surface to air missiles (SAMs). It also manufactures test equipment, underwater weapons, launchers and countermeasures, among others. Besides, it is co-development partner with the DRDO for the next generation of ATGMs and SAMs.
With an order book of Rs 10,543 crore, the missile maker is likely to gain from the government’s New Defence Procurement Policy (DPP) and Make in India. But delays in awarding of contracts and postponement in the company’s foray into international markets will be a key overhang.
So far, revenue for the missile manufacturer rose 30 per cent annually in the past two fiscals to reach Rs 4,832 crore in FY17. Net profit rose 5 per cent annually to Rs 490 crore during the same period. Operating profit grew at 44 per cent to Rs 568 crore between FY15 and FY17. In the first half of the current fiscal, it reported revenue of Rs 1,806 crore and Rs 172 crore of net profit.
India has the third largest military in the world and is the sixth largest spender in defence. For FY19, the allocation towards defence has been raised by 7.81 per cent to Rs 2.95 lakh crore, from FY18’s Rs 2.74 lakh crore.
The stock closed the day at Rs 390.70 on BSE, down 8.71 per cent from its issue price.
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Read this article in :Hindi
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