New Delhi, Sep 8 (IANS) The offer for sale of Bharat Dynamics Ltd has been oversubscribed 1.4 times by non-retail investors on the first day and the Union Government has decided to exercise the “green shoe” option.
“Offer for Sale of 15 per cent Govt shares in BDL got good response on day one and was subscribed 1.40 times by non-retail investors. Govt has decided to exercise the green shoe option,” said a tweet by Twitter handle of the Secretary of Department of Investment and Public Asset Management (DIPAM).
Green shoe refers to the option of over-allotment of shares.
The tweet said that retail investors get chance to bid on Wednesday with a discount of Rs 20 on the cutoff price.
A regulatory filing by the company said: “We wish to exercise the complete Oversubscription Option to the extent of 5 per cent of the total paid up equity share capital of the Company as on June 30, 2020 in addition to the Base Offer Size. Accordingly, the total Offer Size will be 15 per cent of the total paid up equity share capital of the Company as on June30, 2020.”
Shares of Bharat Dynamics plunged nearly 14 per cent on Tuesday on the government’s proposal to sell up to 15 per cent stake in the PSU through an offer for sale (OFS).
Its shares on the BSE closed at Rs 331.15, lower by Rs 53.35, or 13.88 per cent, from the previous close.
Through the offer for sale scheduled on September 8 and 9, the Centre plans to raise nearly Rs 907 crore, the company said in a regulatory filing.
At present, the Centre holds 87.75 per cent and plans to sell nearly 2.75 crore equity shares.
The OFS includes 1.83 crore shares in its base offer and another 91 lakh shares in case of oversubscription taking the total shares on offer to 15 per cent of the outstanding equity shares of the company, or more than 2.74 crore shares, the filing on Monday evening added.
The floor price for the sale has been fixed at Rs 330 per share.