The initial public offering (IPO) of Mishra Dhatu Nigam (MIDHANI) was subscribed by 0.26 times on Wednesday, the first day of the three-day offer with investors bidding for 1.25 crore shares of the 4.87 crore shares reserved for them. Qualified institutional buyers bid for 0.46 times the shares offered to them, high net worth individuals bid for 27,750 shares against 70.25 lakh shares allotted to them, retail investors 0.11 times and employees 0.03 times.
The government-owned ‘Miniratna’ company, which is engaged in the manufacturing of special steels, superalloys and titanium alloys, has priced its initial public offer (IPO) in a band of Rs 87-90 per share.
The IPO is an offer for sale of 4.87 crore shares, which at the upper price of the band will translate into an offer size of Rs 438 crore.
The offer will close on March 23.
Retail investors and employees will get a discount of `3 per equity share.
Bids can be made for a minimum of 150 shares and multiples of 150 shares thereafter. The IPO comprises a reservation of 18.73 lakh shares for eligible employees.
The 100% offer-for-sale constitutes 26% of the post-offer paid up equity share capital of the company.
The offer is a part of the disinvestment programme of the government, and all the proceeds will go to the central exchequer.
As per its red herring prospectus (RHP), MIDHANI’s total revenues grew at a CAGR of 9.23% from Rs 585.18 crore in FY13 to Rs 833 crore in FY17. The company’s PAT grew at a CAGR of 7.68 % from Rs 93.9 crore in FY13 to Rs 126.31 crore in FY17.
The company posted a PAT of `27.30 crore on total revenue of `220.6 crore for the six months period ended September 30, 2017.
MIDHANI joins a long list of companies that have raised funds from the market in the recent past. In 2017, 36 companies raised Rs 67,147 crore through IPOs. Listing gains and the positive sentiment in the market are among the reasons attributed to the trend.