Bharat Dynamics IPO made a weak debut on the bourses with the stock slipping 15.88 per cent to list at Rs 366 against its issue price of Rs 428 on the BSE. On the NSE, the stock listed at Rs 370, a 13.55 per cent discount to the issue price.

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At 10:07 am, the stock was trading over 10 per cent higher against its opening price, but 7 per cent lower vs its issue price on the BSE.

"The stock was expected to open lower amid broader market correction, but long-term investors can stay invested as Bharat Dynamics is a strategic defence play," said Avinash Gorakssakar, HoR, Joindre Capital.

Gorakssakar also said that a price below Rs 400 is attractive valuation-wise. “Short-term pressure is expected on the stock, but an investor having a 12-month horizon should buy into it,” he added.

Broking firm Centrum Broking had pointed out in its pre-IPO note that the listing gains may be capped owing to the current market volatility. Centrum had recommended subscribe on the issue for a long-term perspective.

“The opportunities that are expected to arise in the defence space given the government focus along with upcoming orders from the Akash Weapon System and need for equipment modernisation are likely to be positive for BDL. Given the reasonable valuations and growth prospects, investors can subscribe to the issue from a long-term perspective,” it said.

Rs 960 crore initial public offer of Bharat Dynamics was oversubscribed 1.30 times. The IPO received bids for 2,92,42,115 shares against the total issue size of 2,24,51,953 shares. The category set aside for qualified institutional buyers (QIBs) was oversubscribed 1.50 times, non-institutional investors 50 per cent and retail investors 1.41 times.

Price band for the company’s IPO had been fixed at Rs 413-428.