Mumbai, Sep 8: Shares of Bharat Dynamics plunged 13 per cent on Tuesday as the Union government has announced to sell up to 15 per cent stake in the PSU through an offer for sale (OFS).

Through the offer for sale scheduled on September 8 and 9, the Centre plans to raise nearly Rs 907 crore, the company said in a regulatory filing.

Following the announcement, company's shares plunged on Tuesday morning. At 10.40 a.m. its shares were trading at Rs 334.45, higher by Rs 50.05 or 13.02 per cent from its previous close.

At present, Centre holds 87.75 per cent and plans to sell nearly Rs 2.75 crore equity shares.

The OFS includes Rs 1.83 crore shares in its base offer and another Rs 91 lakh shares in case of oversubscription taking the total shares on offer to 15 per cent of the outstanding equity shares of the company, more than Rs 2.74 crore shares, the filing added on Monday evening.

The floor price for the sale has been fixed at Rs 330 per share. This is part of the government's disinvestment plans in the current fiscal. Last month the government sold a stake in Hindustan Aeronautics through OFS.

(The above story first appeared on LatestLY on Sep 08, 2020 12:55 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).