Midhani IPO subscribed 91% on Day 3
NEW DELHI: The initial public offering (IPO) of mini-ratna Mishra Dhatu Nigam (Midhani) was subscribed 91 per cent till 01:30 pm on Friday, the third and final day of the bidding process.
Investors bade for 4,45,02,750 shares as against the total issue size of 4,87,08,400, NSE data showed.
The offer is part of the disinvestment programme through which the government is looking to offload 26 per cent stake.
The IPO consists entirely of an offer for sale (OFS) of 4.87 crore shares (26 per cent stake) by the government. Of the total issue, 3.8 per cent, that is 18,73,400 shares, shall be reserved for employees of the company. Retail investors and employees will be offered a discount of Rs 3 per share. The price band of the offer has been fixed at Rs 87-90 with a face value of Rs 10 each.
Over FY15-17, Midhani registered revenue and PAT CAGR of 9 per cent and 10 per cent, respectively. Average Ebitda margins and RoE over the period stood at 22 per cent and 20 per cent, respectively. As of September 30, 2017, debt to equity stood at 0.1x, with cash and equivalents of Rs 261 crore. Performance during H1 FY18 has been subdued owing to the shutdown of its plant for maintenance reasons.
Brokerage Centrum Wealth in its IPO note said, "We believe the government’s focus on aerospace, defence and other industrial sectors could provide future growth opportunities to the specialty metals segment. Given the dominant position and growth prospects, investors can subscribe to the issue from a long-term perspective. However, it must be noted that in the current market environment that the listing gains may be capped."
Investors bade for 4,45,02,750 shares as against the total issue size of 4,87,08,400, NSE data showed.
The offer is part of the disinvestment programme through which the government is looking to offload 26 per cent stake.
The IPO consists entirely of an offer for sale (OFS) of 4.87 crore shares (26 per cent stake) by the government. Of the total issue, 3.8 per cent, that is 18,73,400 shares, shall be reserved for employees of the company. Retail investors and employees will be offered a discount of Rs 3 per share. The price band of the offer has been fixed at Rs 87-90 with a face value of Rs 10 each.
Over FY15-17, Midhani registered revenue and PAT CAGR of 9 per cent and 10 per cent, respectively. Average Ebitda margins and RoE over the period stood at 22 per cent and 20 per cent, respectively. As of September 30, 2017, debt to equity stood at 0.1x, with cash and equivalents of Rs 261 crore. Performance during H1 FY18 has been subdued owing to the shutdown of its plant for maintenance reasons.
Brokerage Centrum Wealth in its IPO note said, "We believe the government’s focus on aerospace, defence and other industrial sectors could provide future growth opportunities to the specialty metals segment. Given the dominant position and growth prospects, investors can subscribe to the issue from a long-term perspective. However, it must be noted that in the current market environment that the listing gains may be capped."