Sandhar Technologies Limited which is tapping the capital markets with its simultaneous offer completed allocation to anchor investors. The company is issuing fresh shares worth Rs 300 crs and an offer for sale of 64 lakh shares in a price band of Rs 327-332. The issue opens on Monday the 19th of March and closes on Wednesday the 21st of March.

The company allotted 46,30,842 equity shares to 15 anchor investors comprising of 21 entities. The highest allocation made was of 3,31,290 equity shares or 7.15% of the anchor portion. This was made to seven anchor investors and included names like DSP Blackrock, Aditya Birla Sun Life and UTI amongst others. Some others like ICICI Prudential were allotted the same amount in a combination of more than one fund.

The PE multiple based on consolidated results for March 2017 is between 42.69-43.34 times its EPS of Rs 7.16. The EPS for the half year ended September 2017 has increased significantly with many plants achieving better operating levels and has improved to Rs 6.69 for the half year. If one were to annualize the same it is Rs 13.38. The PE multiple at these earnings is a more reasonable 24.43-24.81 times.

The full list of anchor allocation is given below: –

The offer for sale from Bharat Dynamics Limited was subscribed. The company had tapped the capital markets with its offer for sale of 2,24,51,953 shares in a price band of Rs 413-428. There was a discount of Rs 10 for eligible employees and retail investors. The issue was open from Tuesday the 13th of March and closed on Thursday the 15th of March.

The issue was subscribed 1.5 times by QIB’s and remain undersubscribed by HNI’s who subscribed their portion by 0.50 times. Retail portion was oversubscribed 1.41 times. Employee portion remained undersubscribed at 0.42 times. There were 23,475 applications which means that on basis of minimum lot the issue in retail was subscribed 0.11 times.

Yet another way of looking at it is that the average application size is Rs1,94,000. This if one considers the discount works out to the maximum permissible of 13 lots or 465 shares.

The response overall was unsatisfactory for a good company from the defence sector in a niche segment like missiles.

The full details of subscription are given below: –