Five public sector enterprises bought more than half the shares that were on offer in state-owned Mishra Dhatu Nigam Ltd.'s initial public offering.
Together, these units were allotted 2.79 crore shares or 15 percent stake for Rs 252 crore in the specialty steelmaker's IPO, according to disclosures submitted to the stock exchange. That's 58 percent of the offer size.
The five PSUs which subscribed to the Midhani offer include the country largest lender State Bank of India, Union Bank Of India, General Insurance Corporation of India and The New India Assurance Co. Ltd.
Last week, Life Insurance Corporation of India bought more than two-thirds of the shares that were up for grabs in state-owned Hindustan Aeronautics Ltd.'s IPO. In fact, India's largest insurer bailed out at least four initial public offerings from the government of India in the financial year 2017-18.
Five PSUs subscribed nearly 58% of Mishra Dhatu Nigam (MIDHANI) IPO. pic.twitter.com/Z3e6PB8VWX
The government had raised Rs 438 crore through the Midhani offer which received muted demand from high net-worth individuals and retail investors.
The company is the leading manufacturer of special steels and the only maker of titanium alloys in India. These are used by aerospace, power generation, nuclear, defence and other general engineering industries. It caters to products that constitute less than 1 percent of the global steel market.
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