Published on Tuesday, February 21, 2017 by Dilip Davda | Modified on Wednesday, June 18, 2025
Of late we found Government of India is doing disinvestment's through CPSE of OFS routes and trying to reach target of disinvestment for the current fiscal. After the sudden OFS of MOIL in last month, the Govt Of India is now bringing OFS of Bharat Electronics Ltd (BEL) that starts today (22.02.17) and will close on 23.02.17. Details of the said offer for sale are as under:
| Issue Date (Non Retail Investors) | 22 Feb 2017 |
| Issue Date (Retail Investors and Non Retail Investors) | 23 Feb 2017 |
| Issue Timings | 09:15 to 15:30 |
| Offer Size for Retail Investors | 22,33,628 |
| Offer Size for Non Retail Investors | 89,34,511 |
| Floor Price | 1,498.00 |
| Lot Size | 1 |
| Minimum Bid Quantity | 1 |
| Maximum Bid Quantity | 1,11,68,139 |
| Discount to Retail Investors | 5% to the Cut off price |
| Date | Total Issue Size | Total Subscription | No. of Times |
|---|---|---|---|
| 22nd Feb 2017 | 89,34,511 | 2,09,00,188 | 2.34 times |
| 23nd Feb 2017 | 22,33,628 | 1,18,65,159 | 5.31 times |
BEL is a defense sector PSU, coming out with a OFS of 11168139 equity share of Rs 10 each with a floor price of Rs 1498.00. Issue will open on 22.02.17 for Non-Retail investors and on 23.02.17 for Retail investors who are getting 5 per cent discount on the cut off price. Non-retail investors have option to carry forward their bids for the following day i.e. on 23.02.17. Offer size for Non-Retail is 8934511 shares and 2233628 shares for Retail investors. Application is to be made during the trading hours of the bourses (BSE and NSE) and the minimum lot is 1 share with a Tick Price of Rs 0.05 per share. Floor price is fixed at Rs 1498 and the allotment will be done on price priority basis.
The company suffered a setback for the quarter ended 30.06.16, but thereafter it is on a fast forward mode with higher top and bottom lines.
The President of India, acting through and represented by the Ministry of Defense, Government of India is the seller promoter and the selling members will be 1)SBICAP Securities Limited (Clg.No 95),ICICI Securities Ltd (Clg.No 103), Edelweiss Securities Ltd (Clg No 121) and Deutsche Equities India Private Limited (Clg. No 905).
The counter of this company closed at Rs 1559.95 (BSE) and Rs 1558.50 NSE) on 21.02.17 (with a 52 week high/low of Rs 1624-1009), thus the offer is at a discount of around 3.95 per cent to closing market price on the previous eve. Scrip code on BSE is 500049 and on NSE BEL.
At the 21.02.17 closing price, the company's market cap is around Rs 34842 crore.
Conclusion: As Government has increased defense spending, this company is set for bright prospects ahead. Investors may consider investment for medium to long term rewards.
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Dilip Davda
SEBI Registered Research Analyst – Mumbai
Registration No.: INH000003127 (Perpetual)
Email: dilip_davda@rediffmail.com
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
