Share price of Bharat Dynamics fell 5 per cent on Wednesday, extending fall to the second straight day after the government launched an offer for sale (OFS) to divest 15 per cent stake. The shares dipped 5 per cent to Rs 315 on BSE today. In total, the stock has fallen 18 per cent in the last two trading sessions. The scrip has fallen below the base price of Rs 330 per share fixed for the OFS.
The mid cap stock has gained 21 per cent in one year and risen 13.62 per cent since the beginning of this year. In a month, the share has fallen 20.51 per cent. Shares of Bharat Dynamics were trading at Rs 314, down 17.15 points or 5.18 per cent on BSE at the time of reporting.
The government which owns 87.75 per cent stake in the defence firm is selling 2.71 crore shares. The floor price of the OFS has been fixed at Rs 330 per share, a 14 per cent discount to Monday's closing price of Rs 384.50.
The OFS includes 1.83 crore shares in a base offer and another 91 lakh shares in case of oversubscription. Retail investors can bid for the OFS on Wednesday. Fifteen per cent of the shares are allotted as a retail portion with a discount of Rs 20 over cut off price.
"DPP 2016 is a step towards creating an industry-friendly structure to facilitate better contract negotiations and improve the pace of contract awards. Breakthroughs like the Make procedure, strategic partnership (SP) model, liberalisation of FDI norms, and creation of a level-playing to the private industry have been introduced. Moreover, the company is working as a co-development partner with DRDO in many projects including Nag, Astra, MPATGM, SAAS, QRSAM, AKASH-NG etc," Bharat Dynamics had said in the 2019-20 annual report.