Mishra Dhatu Nigam IPO subscribed 1.21 times

Receives bids for 5.90 crore shares

The initial public offer (IPO) of Mishra Dhatu Nigam (MIDHANI) received bids for 5.90 crore shares. The issue was subscribed 1.21 times. The price band for the issue had been fixed at Rs 87 to Rs 90 per share. The issue opened for subscription on Wednesday, 21 March and closed yesterday, 23 March 2018.

The IPO comprised of an offer for sale (OFS) by the President of India acting through the Ministry of Defence of India of 4.87 crore equity shares. The IPO consists of a reservation of up to 18.73 lakh equity shares for subscription by eligible employees and the net public offer of 4.68 crore equity shares.

Category-wise subscription details showed that the qualified institutional buyers (QIBs) subscribed 1.96 times, the non-institutional investors' category was subscribed 0.12 times and retail individual investors (RIIs) category received a subscription of 0.72 times.

The objects of the offer are to carry out the disinvestment of 4.87 crore equity shares by the selling shareholder constituting 26% of company's pre-offer paid up equity share capital and to achieve the benefits of listing the equity shares on the stock exchanges. The company will not receive any proceeds from the offer and all proceeds shall go to the selling shareholder. Government of India will hold 74% of total paid up equity share capital of the company post listing.

In the half-year ended September 2017, net sales stood at Rs 203.69 crore and profit after tax stood at Rs 27.30 crore.

Mishra Dhatu Nigam (MIDHANI) is a government of India enterprises is one of the leading manufacturers of high value speciality steel, superalloys and only manufacturer of titanium alloys in India. The company has achieved the status of a Mini Ratna, Category-I company in 2009.

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