Mini-ratna speciality alloy maker Mishra Dhatu Nigam Limited (Midhani) has set a price band of Rs 87 to Rs 90 for its initial public offer (IPO). 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 open on March 21 and close on March 23. Retail investors and employees will get a discount of Rs 3 per equity share. Bids can be made for a minimum of 150 shares and multiples of 150 shares thereafter. The IPO includes 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, which is engaged in manufacturing special steels, super alloys and titanium alloys. 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 FY2013 to Rs 833 crore in FY2017. The company’s PAT grew at a slower CAGR of 7.68% from Rs 93.9 crore in FY2013 to Rs 126.31 crore in FY2017.
The company posted a PAT of Rs 27.30 crore on total revenue of Rs 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.