Started in 1970, Bharat Dynamics Ltd is Hyderabad based wholly owned Government of India company involved in the production of Surface to Air missiles (SAMs), Anti-Tank Guided Missiles (ATGMs), underwater weapons, launchers, countermeasures and test equipment. Bharat Dynamic have three production plants situated in Hyderabad, Bhanur and Vishakhapatnam.
Bharat Dynamics is the sole manufacturer in India for SAMs, torpedoes and ATGMs. The company is also the sole supplier of SAMs and ATGMs to the Indian Armed Forces.
Additionally, the company is involved in the business of refurbishment and life extension of missiles produced. The company is planning to roll out products such as Akash SAM, lightweight torpedoes and countermeasure dispensing system to the international markets in the upcoming years.
Bharat Dynamics have over 3165 full-time employees, which includes 863 engineers.
IPO Opens on: March 13, 2018
IPO Closes on: March 15, 2018
Issue Type: Book Built Issue IPO
Issue Size: the Net Offer shall constitute 21,993,750 Equity Shares amounting to Rs. 941.33 crores
Face Value: INR 10 per Share
Price Band: INR 413-428 Per Equity Share*
*Employee and Retail Discount of INR 10 per share
Minimum Order Quantity: 35 shares
Listing at: NSE, BSE
(i) to carry out the disinvestment of [Ï%] Equity Shares by the Selling Shareholder and
(ii) to achieve the benefits of listing the Equity Shares on the Stock Exchanges.
Total Income of 2016-17: INR 51,980.7 Millions
Total Income of 6M 2017-18: INR 21,902.51 Millions
Earnings per Share (EPS): INR.43.13
Earnings per Share (EPS) 6M: INR.14.42
Equity Capital as on 30.9.2017: INR 916.41 Million
Upper Price Band/last EPS: 19.84
Book Value of the Share As on September 30, 2017: INR 88.96**
**NAV adjusted for bonus shares in ratio of 1:1
Upper offer price/Book Value Ratio: 4.81
SBI Capital Markets Ltd
IDBI Capital Markets & Securities Ltd
Yes Securities India Ltd
3 lead managers have handled 26 public issues in the past 3 years out of which 7 IPOs closed below the issue price on listing date.
Registrar to the IPO:
Alankit Assignments Ltd, New Delhi
|Particulars||For the year/period ended (in Rs. million)|
|Profit After Tax||4,903.19||5,620.69||4,435.48|
Bharat Dynamics Ltd (BDL) on 7th March 2018 informed it will come out with its Rs 960 crore Initial Public Offering (IPO) on 13th March 2018.
The company has set a price range of Rs 413 to 428 per share for the public issue. The issue will close on 15th March 2018.
The scrip sale is an offer for sale that will see the government sell a sum total of 22.45 million scrips, showing a holding reduction of approx 12%. The face value of the shares is Rs 10. The government is giving an employee discount and retail discount of Rs 10 per share. The minimum bid size is 35 equity shares and in multiples of 35 thereafter.
The Hyderabad based company has three manufacturing facilities located in Hyderabad, Bhanur and Visakhapatnam. It is also setting up two more production plants at Ibrahimpatnam, near Hyderabad and Amravati, which will be used to produce SAMs and very short range air defense missiles, respectively.
The Bharat Dynamics stake sale is part of the government divestment programme. The government has raised a record Rs 91,250 crore so far this year against its FY18 target of Rs 72,500 crore, of which Rs 36,700 crore is through strategic sales in HPCL.
The Cabinet in April 2017 had passed the disinvestment of 4 public sector companies which comprised of Bharat Dynamics and Mishra Dhatu Nigam, under the defense ministry.
Bharat Dynamics filed its draft prospectus to the stock market regulator, Securities and Exchange Board of India (SEBI) in January 2018.
Bharat Dynamics scrip sale is part of the Union government’s divestment program under which the Department of Investment and Public Asset Management (DIPAM) wants to sell government holding in many central public sector enterprises through various ways such as IPOs, offers for sale and strategic sales.
One more defense sector company Hindustan Aeronautics Ltd (HAL) is also planning an IPO in March. The company plans to raise approx Rs 4,000 crore through its issue.
The president of India, Acting through the Ministry of Defence, Government of India.
The company also plans to automate production systems at its production plant in Hyderabad to raise the production of SAMs.
The company is also in the process of starting a test fire range in Rachakonda, Telangana which will result in operational benefits and cost saving. The company will also concentrate on Research & Development.
The company has established the missile development group with the goal to design and develop missiles. It has also set up many technological labs such as RF labs, laser labs, aerodynamic labs and seeker labs to make seeker technologies.
The company mainly caters to the needs of the Indian armed forces. Its objective is to better their market position by expanding their capabilities, capitalising on chance both in domestic and international markets.
BDL Chairman and Managing Director V Udaya Bhaskar told that they believe their ongoing investment in infrastructure in terms of their future production facilities at Ibrahimapatnam in Telangana and Amravati will help them to cater to the growing demand of our customers.
Our Company is engaged in the business of manufacturing missiles. There are no listed peers in India which are engaged in a similar line of business as the Company, hence comparison with industry peers is not applicable
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