Incorporated in 1970, Bharat Dynamics Ltd. is a Hyderabad based wholly-owned Government of India (GoI) Company engaged in the manufacture of Surface to Air missiles (SAMs), Anti-Tank Guided Missiles (ATGMs), underwater weapons, launchers, countermeasures, and test equipments. The company 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. The company is also engaged in the business of refurbishment and life extension of missiles. The company has three manufacturing facilities located in Hyderabad, Bhanur, and Visakhapatnam.
Bharat Dynamics Ltd. has a monopoly in manufacturing and supplying missiles in India. Considering the upper price band of INR. 428, the company's P/E works out to 10.67x. However, the company had issued bonus shares in ratio of 1:1 in February 2018. Retrospectively, the EPS for FY17 including the bonus shares would be INR. 21.57. Accordingly, the P/E works out at 19.8x.
With a consistent revenue and strong order book BDL IPO looks good to SUBSCRIBE with medium to long term perspective for this IPO.
The promoter of the company is:
- The President of India acting through the Ministry of Defence (MoD)
Summary of finance performance (Standalone in INR Millions)
Objects of Issue
The objects of the offer are to:
- Carry out the disinvestment of 22,451,953 equity shares by the selling shareholder constituting 12.25% of the company's pre-offer equity share capital of the company.
- Achieve the benefits of listing the equity shares on the stock exchanges. The company will not receive any proceeds from the offer and all the proceeds will go to the selling shareholder.
- SBI Capital Markets Ltd.
- IDBI Capital Markets and Securities Ltd.
- YES Securities Ltd.
First published on 13 Mar, 2018 on stocks94.com.
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