BEL share sale: Govt nets Rs 1670 cr on robust demand

Pablo Tucker
February 23, 2017

Total size of the OFS is 1.11 crore equity shares.

The Centre's move to divest 5 per cent stake in BEL (earlier Bharat Electronics), out of its overall shareholding of 74.41 per cent, received an overwhelming response with the issue getting oversubscribed 2.6 times, according to PIB press release. Any unsubscribed portion of the retail category will be allocated to the un-allotted bids of institutional buyers who have chosen to carry forward their bids on Thursday.

With the BEL stake sale, the government's disinvestment kitty would swell to almost Rs 33,000 crore.

Retail investors are being given 5 percent discount to the share allotment price. "The issue has been oversubscribed by 260 per cent", the statement said.

The 2-day offer for sale (OFS) of the government's 5 percent stake in BEL at a floor price of Rs 1,498 opened for non-retail investors today.

BEL stock was trading 3.04 percent down at Rs 1512.45 on BSE in pre-close trade.

For 2017-2018, the government has set a record disinvestment target of Rs72,500 crore.BEL is a Navratna Company under the administrative control of Ministry of Defence and is engaged in manufacturing of the state-of-the-art equipment in the field such as communication, radars and naval systems.

The government has so far raised over Rs 31,000 crore through minority share sale by way of OFS, share buyback and Central Public Sector Enterprises exchange-traded funds (CPSE ETF) in the current financial year.

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