Bharat Dynamics Ltd IPO (Bharat Dynamics IPO) Detail
ABOUT THE COMPANY:
Hyderabad-headquartered Bharat Dynamics Ltd is one of the leading defence PSUs in India engaged in the manufacture of surface to air missiles (SAMs), anti-tank guided missiles (ATGMs), underwater weapons, launchers, countermeasures and test equipment. Bharat Dynamic ltd have three manufacturing facilities located in Hyderabad, Bhanur and Vishakhapatnam.Company is also in the process of setting up two additional manufacturing facilities at Ibrahimpatnam (near Hyderabad) and Amravati in Maharashtra .
Founded in 1970, Bharat Dynamics Ltd have over four decades of experience in manufacturing missiles and countermeasures and its allied equipments.Bharat Dynamics Ltd supplies its products to Indian armed forces. BDL is also engaged in the business of refurbishment and life extension of missiles manufactured. Additionally BDL is a co-development partner with DRDO for next generation of ATGM and SAM.
(1)The Hyderabad manufacturing unit is engaged in the manufacture of SAMs, Milan 2T ATGMs, countermeasures, launchers and test equipment
(2)The Bhanur unit is engaged in the manufacture of the Konkurs – M ATGMs, the INVAR (3 UBK 20) ATGMs, launchers and spares.
(3)The Vishakapatnam unit is engaged in the manufacture of light weight torpedoes, the C-303 anti torpedo system, countermeasures and spares.
All manufacturing facilities of Bharat Dynamics Ltd have ISO 14001:2004 certifications from TUV India Private Limited.
Bharat Dynamics Ltd is the first of its kind offer to public to own a GovernmentOf India owned defense Sector Company which is the sole manufacturer in India for SAMs, torpedoes and ATGMs to the Indian armed forces. We believe BDL will take full benefits of Make in India’ initiative .
Bharat Dynamics have over 3165 full-time employees, which includes 863 enginEERS.
BHARAT DYNAMICS LTD STRENGHTS:
(1) The infrastructure at manufacturing facilities combined with vast expertise enable the company to cater to the needs of the Indian armed forces in a timely manner.
(2)The implementation of ‘Make in India’ policy has enabled it to improve supply chain management in order to meet long term commitments to primary customer, the MoD and ensured transparency in identifying and developing new vendors. Increase in indigenisation will enable the company to reduce reliance on imports and the cost of products.
(3)It has a diversified Board with directors and each of key management team having several years of experience in the defence industry.
(4)As of January 31, 2018, its outstanding order book was Rs 10,543 crore. It has delivered consistent growth over the last five financial years both in terms of financial and operational metrics.
The Promoter of the Bharat Dynamics Ltd is the President of India acting through the Ministry of Defence. Promoter along with its nominees, currently holds 100% of the pre-Offer Equity Share capital of the Company.
- Mr.Udaya Bhaskar Varanasi (Designation: Chairman and Managing Director)
- Mr.Piramanayagam Subrahmaniam (Designation: Director (Finance) and Chief Financial Officer)
- Mr.Voleti Gurudatta Prasad (Designation: Director (Production))
OBJECTIVE OF THE ISSUE:
It is an offer for sale; hence the company will not receive any proceeds from the offer and all the proceeds will go to the selling shareholder.
Main objects of the Offer are to carry out the disinvestment of 22,451,953 equity shares by the selling shareholder and to achieve the benefits of listing the equity shares on the stock exchanges.
It is a part of divestment programme for which the government revised its target to Rs 80,000 crore (from Rs 72,500 crore earlier) in the recent Union Budget.
|(in Crores)||FY 13||FY 14||FY 15||FY 16||FY 17||30th Sept 17|
BHARAT DYNAMICS IPO DETAILS:
|Bharat Dynamics IPO details|
|Subscription Dates||13 – 15 March 2018|
|Price Band||INR413 – 428 per share (discount of INR10 per share for retail investors)|
|Offer For Sale||22,451,953 shares (INR927.27 – 960.94 crore)|
|Total IPO size||22,451,953 shares (INR927.27 – 960.94 crore)|
|Minimum bid (lot size)||35 shares|
|Face Value||INR10 per share|
|Listing On||NSE, BSE|
A discount of Rs 10 per equity share on offer price is offered to retail and employees.
|Finalization of Basis of Allotment||on or Before 20th March 2018|
|Initiation of Refunds||on or Before 21st March 2018|
|Credit of Equity Shares:||on or Before 22nd March 2018|
|Listing Date:||on or Before 23rd March 2018|
Bharat Dynamics IPO Registrar
Alankit Assignments Ltd
Alankit House 2E/21,
New Delhi – 110055
Phone: (011) 4254 1234
Fax: (011) 4254 1967
Bharat Dynamics IPO Lead Manager(s)
|1. IDBI Capital Market Services Limited|
|2. SBI Capital Markets Limited|
|3. Yes Securities (India) Limited|
BROKERAGE HOUSES VEIWS:
- Valuations are lower compared to peers like Bharat Electronics and Apollo Micro System.
- Bharat Dynamics has a strong order book and revenue outlook, coupled with superior return ratios compared to peers.
- Recommend ‘Subscribe’ on the issue considering the positive factors, including the growth in defence industry.
- The company has a robust order book, a strong order outlook, best-in-class execution capabilities and a leverage-free balance sheet.
- The stock is being offered at reasonable valuations.
- Recommend ‘Subscribe’ for the long term.
- Don’t expect listing gains
- Investors with a long-term view can ‘Subscribe’ given the potential for missile procurement in India over the next decade.
- The company has a dominant position as a government-owned defence enterprise
- Strong return ratios, negative working capital management, strong growth track and superior balance sheet (debt-free) are a positive.
- Recommend ‘Subscribe’
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