Bharat Dynamics shares fall 16% on stock market debut

Mumbai: Shares of Bharat Dynamics Ltd debuted at 15.9% discount to its issue price after its Rs960-crore initial public offering (IPO) of the public sector undertaking witnessed an overall subscription of 1.3 times last week.

Bharat Dynamics shares opened 15.88% lower on the BSE at Rs360 apiece, compared to the issue price of Rs428, which was the upper end of the price band of Rs413-428 per share.

At 10.10am, the shares were down 7.35% at Rs397.05, while benchmark 30-share Sensex traded 1.13% lower at 32616.62. Earlier in the day, the shares touched a high of Rs402.80 and a low of Rs360.

Bharat Dynamics was the first state-run company to be listed in 2018.

Brokerages had recommended subscribing for state-owned defence equipment maker’s IPO, citing strong return ratios and sound track record on profitability.livemint

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