Mishra Dhatu Nigam Ltd. (Midhani) closed flat after making its stock market debut today. The stock began trading at a discount of 3.3 percent to its issue price of Rs 90 on the National Stock Exchange. Thereafter, the stock saw a high of Rs 90.90 and a low of Rs 86.15.
The company's Rs 438-crore initial public offering was subscribed 1.2 times on the final day of bidding.
Five public sector enterprises – State Bank of India, Union Bank Of India, Life Insurance Corporation, General Insurance Corporation of India and The New India Assurance Co. Ltd., bought a total of 58 percent of the offer size, according to its stock exchange notification.
Midhani manufactures special steels and is the only maker of titanium alloys in India. These are used by aerospace, power generation, nuclear, defence and other general engineering industries. The company caters to products that constitute less than 1 percent of the global steel market.
Its order book as of Jan. 31 was Rs 517 crore, about 64 percent of its revenue in the year ended March 2017, with most of its order coming from the defence and space industry.
Midhani's net worth as of Sept. 30 was close to Rs 733 crore, translating to a book value of Rs 39 per share. Midhani had had more than Rs 260 crore in cash as of Sept. 30.
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