Bharat Dynamics falls 16% on stock market debut

At 11.30 am, the shares were down 9.88%% at Rs 385.70, while benchmark BSE Sensex traded 1.38% lower at 32,550.48.

Shares of Bharat Dynamics Ltd debuted at 15.9% discount to its issue price, after its Rs 960-crore initial public offering (IPO) of the public sector undertaking witnessed an overall subscription of 1.3 times last week.

The Bombay Stock Exchange (BSE) logo is seen under a bull statue at the entrance of their building in Mumbai, India. (REUTERS File)

Bharat Dynamics shares opened 15.88% lower on the BSE at Rs 360 apiece, compared to the issue price of Rs 428, which was the upper end of the price band of Rs 413 - 428 per share.

At 11.30 am, the shares were down 9.88%% at Rs 385.70, while benchmark BSE Sensex traded 1.38% lower at 32,550.48. Earlier in the day, the shares touched a high of Rs 402.80 and a low of Rs 360.

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.