Mishra Dhatu Nigam‬, ‪Initial public offering‬, ‪Indian rupee‬, ‪India‬, ‪BSE‬‬

Mishra Dhatu Nigam Ltd IPO: The public offer of Mishra Dhatu Nigam Ltd will remain open for subscription for three days from 21 to 23 March 2018.

Mishra Dhatu Nigam Ltd IPO: The initial public offering of Hyderabad-based defence PSU Mishra Dhatu Nigam Ltd is all set to open today for subscription in order to raise Rs 438 crore in which the government of India will offload up to 26% of its shareholding. The state-owned defence company Mishra Dhatu Nigam (MIDHANI) is the third defence company in the row which is launching its IPO in the present calendar year 2018 after recently concluded Hindustan Aeronautics Rs 4,229 crore public issue and Bharat Dynamics Rs 961 crore initial shares sale. Mishra Dhatu Nigam Ltd is one of the manufacturers of special steels, superalloys and only manufacturer of titanium alloys in India.

We take a look at 10 facts about Rs 438 crore public offer

1. The defence PSU Mishra Dhatu Nigam Ltd has expected to raise about Rs 438.38 crore at the upper end of the price band of Rs 90 in the three-day IPO process beginning today. The public offer of Mishra Dhatu Nigam Ltd will remain open for subscription for three days from 21 to 23 March 2018.
2. The state-run company Mishra Dhatu Nigam Ltd 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.
3. The public offer of Mishra Dhatu Nigam Ltd includes a reservation of up to 1,873,400 equity shares for subscription by eligible employees. Mishra Dhatu Nigam Ltd has offered a discount of Rs 3 per equity share on the offer price for retail investors and eligible employees.
4. Mishra Dhatu Nigam Ltd had appointed SBI Capital Markets Ltd and IDBI Capital Markets & Securities Ltd as the book running lead managers while Alankit Assignments Ltd is the registrar to the issue.
5. Based on the basic and diluted EPS (earnings per share) for the year ended 31 March 2017, P/E (price/earnings) at the floor Price is 12.91 times and at the cap price is 13.35 times. The Equity Shares of Mishra Dhatu Nigam Ltd are proposed to be listed on the BSE and the NSE.
6. Mishra Dhatu Nigam Ltd was established in 1973, with an aim of achieving self-reliance in the research, development and supply of critical alloys and products of national security and strategic importance. Mishra Dhatu Nigam Ltd manufactures advanced metallurgical products of special metals and superalloys in India. Mishra Dhatu Nigam Ltd achieved the status of a Mini Ratna, Category-I company in 2009.
7. Mishra Dhatu Nigam Ltd has continuously posted profits in the last five Fiscals. On a restated basis, our total revenues grew at a CAGR of 9.77% from Rs 5,737.52 million for fiscal 2013 to Rs 8,330.90 million for fiscal 2017 and our net profit grew at a CAGR of 11.23% from RS 825.18 million for fiscal 2013 to Rs 1263.13 million for fiscal 2017. Mishra Dhatu Nigam Ltd has earned a PAT of Rs 273.01 million on a total revenue of Rs 2,206.61 million for the six months period ended September 30, 2017, according to the DRHP filed by the company.
8. The prime objects of the offer are is to carry out the disinvestment of 46,835,000 equity shares by the selling shareholder constituting 25% of our Company’s pre-Offer paid up equity share capital. As the public offer of Mishra Dhatu Nigam Ltd is a complete offer for sale, Mishra Dhatu Nigam Ltd will not receive any proceeds from the offer and all proceeds shall go to the selling shareholder.
9. Dr Dinesh Kumar Likhi, 57, is the Chairman and Managing Director of Mishra Dhatu Nigam Ltd. He holds a bachelor’s degree in metallurgical engineering from the University of Roorkee and master’s degree in metallurgical engineering from the Sambalpur University. Dr Dinesh Kumar Likhi has also completed a post-graduate diploma in management from All India Management Association (AIMA), masters of business administration in corporate strategy and economic policy from the Maastricht School of Management, Netherlands and Doctor of Philosophy (PhD) in strategic alliance from the Indian Institute of Delhi. Dr Dinesh Kumar Likhi was also associated with Steel Authority of India Limited (SAIL) at Rourkela as General Manager.