After opening the day in the red, share markets in India have continued the downtrend and are presently trading below the dotted line. Sectoral indices are trading mixed with stocks in the metals sector and stocks in the realty sector trading in red. While stocks in the IT sector are trading in green.

The BSE Sensex is down by 450 points (down 1.4%) and the NSE Nifty is trading down by 143 points (down 1.4%). Meanwhile, the BSE Mid Cap index is trading down by 1.8%, while the BSE Small Cap index is trading down by 2%. The rupee is trading at 65.13 to the US$.

In news from stocks in the IPO space. Bharat Dynamics’ IPO made a dull debut and got listed at Rs 370, a discount of over 15% to the issue price of Rs 428.

The Rs 9.6-billion initial public offering (IPO) of state-run Bharat Dynamics barely sailed through in the subscription phase, with the retail portion subscribed just 1.3 times

Headquartered in Hyderabad, Bharat Dynamics is the sole manufacturer of Surface to Air Missiles (SAM), Torpedoes and Anti-Tank Guided Missiles (ATGM) in India. It is a public sector undertaking under the Ministry of Defence.

The company has grown its revenues and profits at a compounded annual growth rate of 130% and 5% respectively in the preceding three years. At the upper price band of Rs 428, the company is valued at 16 times it’s FY17 earnings.

We had analysed the IPO and released a recommendation note for the Bharat Dynamics IPO, you can access it here. It had set a price band of Rs 413 and Rs 428 and planned to raise up to Rs 9.8 billion.

At the time of writing, Bharat Dynamics share price was trading up by 18% from its issue price.

IPO Subscription Times (2017)

One space which tests the investor’s contrarian philosophy is the IPO space. The demand for IPO’s has reached sky-high levels. Avenue Supermarts was the first company this year to cross the 100-time subscription mark swiftly followed by CDSL and Dixon technologies lately, with MAS Financial Services being the newest entrant to the list.

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