Mumbai: Shares of speciality alloy maker Mishra Dhatu Nigam Ltd (Midhani) debuted at 3.33% discount to its issue price even after its Rs438 crore initial public offering (IPO) witnessed an overall subscription of 1.21 times last week.
Midhani shares opened 3.33% lower on the BSE at Rs87 a piece , compared to the issue price of Rs90, which was the upper end of the price band between Rs87-Rs90 per share.
At 10.05am, the stock was down 0.4% at Rs89.65, while the benchmark 30-share Sensex traded 0.31% higher at Rs33,456.24. Earlier in the day, the shares touched a high of Rs90.90 and a low of Rs86.35, respectively.
Midhani was the third state-run company to be listed in 2018. Bharat Dynamics Ltd shares shed 8.71% on the listing day, while Hindustan Aeronautics lost 9% on the debut.
While Midhani IPO was oversubscribed, the portions reserved for high net worth individuals (HNIs), employees and retail investors were not fully subscribed.
Brokerages were divided about the prospects of Midhani’s IPO. While some felt the valuation was expensive, a few were upbeat on the IPO given the strong outlook for the company.
The IPO is part of the disinvestment programme through which the government offloaded 26% of its holding and the entire proceeds from the share sale went to the government.
Hyderabad-based Midhani manufactures special steel, super alloys and titanium alloys. It was incorporated in 1973 by the ministry of defence.