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Mishra Dhatu Nigam Limited IPO Review (Midhani IPO)

Mishra Dhatu Nigam Limited IPO Review

Mishra Dhatu Nigam Limited (MIDHANI) is engaged in the business of manufacturing of special steels, superalloys and titanium alloys in India. It is Hyderabad based PSU. This company has a manufacturing facility in Hyderabad. MIDHANI’s new issue will be open for applying to start from today. Let us check the DRHP of MIDHANI and consider the issue price, GMP and other issue details to post our Mishra Dhatu Nigam Limited IPO Review for you.

About Mishra Dhatu Nigam Limited IPO :

  • IPO Opens on – March 21, 2018.
  • IPO Closes on – March 23, 2018.
  • Face Value – Rs. 10 Per Equity Share.
  • Issue Price – Rs. 87 – Rs. 90 Per Equity Share.
  • Issue Type – Book Built Issue IPO.
  • Retail Allocation – 35%
  • Market Lot – Nil.
  • Minimum Order Quantity – Nil.
  • Issue Size – 48,708,400 Equity Shares of Rs 10 aggregating up to Rs 438.38 Cr.
  • Offer for Sale – 48,708,400 Equity Shares of Rs 10 aggregating up to Rs [.] Cr.
  • Listing Exchange – BSE NSE.
  • Draft Prospectus – Click Here.

Objectives of the issue:

  • To carry out the disinvestment of 46,835,000 Equity Shares by the selling shareholder constituting 25% of the company’s pre-offer paid-up Equity Share capital.
  • To achieve the benefits of listing the Equity Shares on the Stock Exchanges. This company will not receive any proceeds from the offer and all proceeds shall go to the selling shareholder.

About The Company –

  • Mishra Dhatu Nigam Limited is incorporated in 1973.
  • These high-value products cater to niche sectors including defense, space, and power.
  • Mishra Dhatu Nigam Limited is Mini Ratna, Category-I company since 2009.
  • This company manufactures special steels like martensitic steel, ultra high strength steel, austenitic steel, and precipitation hardening steel.
  • Mishra Dhatu Nigam Limited also manufactures three varieties of Superalloys – (a)nickel base, (b)iron base, (c)cobalt-base and titanium alloys.
  • This company is in the process of setting up two new manufacturing facilities in Rohtak and Nellore.
  • Mishra Dhatu Nigam Limited has an in-house research and development team comprising of 14 officers and has 836 employees.
  • The competitive strengths of this company are-
    1. The only facility in India to carry out vacuum-based melting and refining.
    2. Capability to manufacture a wide range of advanced products.
    3. Research and development based technology development.
Picture IPO
Mishra Dhatu Nigam Limited
Mishra Dhatu Nigam Limited

Promoters of the company :

  • The promoter of the company is the President of India acting through the Ministry of Defence, Government of India.

Company Financials:

Mishra Dhatu Nigam Limited IPO

Mishra Dhatu Nigam Limited IPO Review:

Historically the PSUs have given excellent returns to the investors. We believe that MIDHANI will not be any different. The earnings per share value of MIDHANI as per the last financial year was 6.74 and the PE ratio was at 13.35. In this issue, the Government is selling its stake. The companies revenue comes from defense 72%, space 22%, and others 6%. The only drawback of the company is that they are having only one manufacturing unit so they are location-centric. However, our Mishra Dhatu Nigam Limited IPO Review or MIDHANI IPO Review has a POSITIVE view on this issue. We suggest investors apply in Midhani IPO for a long-term perspective. The IPO does not have any notable grey market activity yet. Hence, traders looking for listing gains must follow our last day IPO selection method before investing in Midhani IPO.

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