Mishra Dhatu Nigam IPO subscribed 64%

Receives bids for 3.10 crore shares

The initial public offer (IPO) of Mishra Dhatu Nigam (MIDHANI) received bids for 3.10 crore shares, data on the National Stock Exchange of India (NSE) website showed as at 17:00 IST. The issue was subscribed 0.64 times. The price band for the issue is Rs 87 to Rs 90 per share. The issue opened for subscription on 21 March 2018 and closes on 23 March 2018.

The IPO comprises 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, which at lower price band of Rs 87 per share, works out to Rs 423.76 crore and at higher price band of Rs 90, the issue size works out to Rs 438.38 crore. 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

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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