Bharat Electronics OFS is oversubscribed by 234% on day one

Bharat Electronics Limited's (BEL) Offer for Sale (OFS) is oversubscribed by 2.34 times. 

Institutional Investors on Tuesday bid around 2.09 crore equity shares, subscribing by 234% against 89.34 lakh equity shares offered.

The issue is available for two days period and will end on February 23, 2017. 

Total size of the OFS is 1.11 crore equity shares.

From the total shraes on offer, 20% of the issue will be reserved for retail investors. 

Floor price for the issue  has been set at Rs 1,498 per share with a 5% discount on the cut off price for retail investors. 

Government plans to sale 5% in BEL to raise Rs 1,700 crore.

BEL is a state-owned company, with 74.41% Government holding and a market cap of Rs 34,843.5 crore. 

During his Union Budget 2017-18 speech, FM Arun Jaitley said, "The government plans to raise Rs 72,500 crore through disinvestment.  In fiscal 2016-17, the government expects Rs 45,500 crore disinvestment receipt as against Rs 56,500 crore budget estimate.”

Despite the OFS issue, shares of BEL tumbled by over Rs 49 or 3% on BSE,  closing at Rs 1510.25 per piece.