The initial public offering (IPO) of defence PSU Mishra Dhatu Nigam Ltd (MIDHANI) opened today (March 21). It is the third IPO by a state-run defence company this year allowing the government to pare its stake after recently concluded Hindustan Aeronautics Limited (HAL) and Bharat Dynamics initial shares sales.
Special steels, superalloys are the major products of Hyderabad based Mishra Dhatu Nigam Ltd. The company is the only manufacturer of titanium alloys in India.
Here are some points about the Mishra Dhatu Nigam IPO
- The company has fixed a price band of Rs 87-90 per equity share for the face value Rs 10
- The floor price is 8.7 times and the cap price is 9 times the face value of equity shares
- Investors can bid for a minimum of 150 equity shares and in multiples of 150 equity shares thereafter
- The company has offered a discount of Rs 3 per equity share on the offer price for retail investors and eligible employees
- The company proposes to raise Rs 438.4 crore through the issue at the higher end of the price band
- The initial issue consists sale of 4,87,08,400 equity shares on offer for sale by the promoter. The President of India is the promoter of the issue, acting through the Ministry of Defence
- The offer opened on 21 March and will close on March 23
- The issue consists of a reservation of up to 1,873,400 equity shares for subscription by eligible employees
- SBI Capital Markets and IDBI Capital Markets & Securities are the book running lead managers Mishra Dhatu Nigam Ltd IPO. Alankit Assignments Ltd is the registrar to the issue
- Equity shares of the state-run firm are proposed to be listed on BSE and NSE. the company will not receive any proceeds from the offer and all proceeds shall go to the government
Mishra Dhatu Nigam Ltd was established in 1973, the products of the company are used by aerospace, power generation, nuclear, defence and other general engineering industries. Mishra Dhatu Nigam Ltd achieved the status of a Mini Ratna, Category-I company in 2009.