Tuesday, March 13, 2018
Monday, March 12, 2018
Stocks which are Bought by Promoter & Director on 12 March 2018
IPO : Bharat Dynamics Ltd.
Bharat Dynamics, the first state-owned missile manufacturer is
set to launch its public issue on 13
March and close on 15 March 2018. The defence public sector company has fixed the price band
between Rs 413 and Rs 428 per equity share for its IPO to raise around Rs 9.6
billion. The government will sell a total of 22.5 million shares of Bharat
Dynamics, diluting its stake by about 12%.
As this is an
offer for sale by the Government of India, the entire proceeds from the IPO
will add to the divestment kitty.
Bharat Dynamics was incorporated in 1970. It is engaged in
making surface-to-air missiles (SAMs), anti-tank guided missiles (ATGMs),
underwater weapons, launchers, countermeasures and test equipment.
It is the sole
manufacturer for SAMs in India, torpedoes and ATGMs. The company is the sole
supplier of SAMs and ATGMs to the Indian armed forces. It is also engaged in
the business of refurbishment and life extension of missiles manufactured.
The company
operates three manufacturing facilities located in Hyderabad, Bhanur and
Visakhapatnam. It is setting up two more manufacturing facilities at
Ibrahimpatnam (near Hyderabad) and Amravati in Maharashtra. The proposed units
will be used to manufacture SAMs and very-short-range air defence missiles
(VSHORADMs), respectively.
Business : DL is the sole manufacturer of Surface to Air
Missiles (SAM), Torpedoes and Anti-Tank Guided Missile (ATGM) in India & the
company is looking to increase its global footprint
as well in terms of export.
Financials : If we articulate latest earnings (1HFY18), at the
price band of Rs 413 to Rs 428 per share then at the higher end of the price
band, the P/E comes to 22.7. This also implies a price to book value of 4.8
times (book value as on 30th Sep 2017).
Taking into consideration of
the Price to Book
Value (P/B) Ratio, it appears highly valued in IPO.
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