Bharat Dynamics IPO To Raise Rs 960 Cr

Mumbai: Defence public sector company Bharat Dynamics today said it has fixed the price band between Rs 413 and Rs 428 per equity share for its initial public offer (IPO) to raise around Rs 960 crore. The issue will open on March 13 and close on March 15.

The government will sell a total of 22,451,953 shares of Bharat Dynamics, diluting its stake by about 12 per cent. SBI Capital Markets, IDBI Capital Markets and Securities and Yes Securities will manage the public issue.

Bharat Dynamics is engaged in the manufacture of surface-to-air missiles (SAMs), anti-tank guided missiles (ATGMs), underwater weapon launchers, counter measures and test equipment for the defence sector.

"We primarily cater to the requirements of the Indian armed forces. Our objective is to enhance our market position by expanding our capabilities, capitalising on opportunities both in domestic and international markets.

We believe our continuous investment in infrastructure in terms of our upcoming manufacturing facilities at Ibrahimapatnam in Telangana and Amravati will enable us to cater to the growing demand of our customers," BDL chairman and managing director V Udaya Bhaskar told reporters here.

The company's proposed Ibrahimapatnam and Amravati manufacturing facilities will be utilised to manufacture new generation of SAMs and ATGMs, respectively. It also intend to automate production systems at its manufacturing facility in Hyderabad to increase the production of SAMs, according to Bhaskar.

"We are also in the process of establishing a test fire range in Rachakonda, Telangana which will result in operational advantages and cost efficiencies. The company will also focus on R&D," he said.

The company has established the missile development group with the objective to design and develop missiles. It has also established various technological labs such as RF labs, laser labs, aerodynamic labs and seeker labs to develop seeker technologies.

The Cabinet in April last year had cleared the disinvestment of four public sector units, including Bharat Dynamics and Mishra Dhatu Nigam, under the defence ministry. (PTI)