New Delhi: Mini-ratna speciality alloy maker Mishra Dhatu Nigam (Midhani) has received capital markets regulator Sebi's go- ahead to float an initial public offer.
Set up in 1973, the Hyderabad-based Midhani manufactures special steel, super-alloys and the only manufacturer of titanium alloys in the country. The company gets over 65 percent of its customers in the defence ministry and the rest in automobiles and railways. Its products are widely used in the aerospace, power generation, nuclear, defence and other general engineering industries. It is setting up a plant in Rohtak in Haryana and an over Rs 3,500 crore joint venture with Nalco to manufacture aluminium alloys at Nellore in Andhra.
Here is all you need to know about Midhani IPO
- Through Midhani's Rs 438-crore initial public offer, the government will offload 26 percent of its holding.
- The company has fixed a price band of Rs 87-90 per equity share for the issue that will open on Tuesday (March 21) and close on Friday (March 23).
- The entire proceeds from share sale will go to government.
- The share sale will be undertaken on behalf of the President acting through the defence ministry, the company said, adding that 1 percent of the issue is reserved for employees who, along with retail investors, will get a Rs 3 discount from the above price band.
- The government will offer 48,708,400 shares or 26 percent of the paid-up equity, while the net offer for the public will constitute 46,835,000 shares or 25 percent.
- SBI Caps and IDBI Capital Markets & Securities are the book-running lead managers to the issue.