Mishra Dhatu Nigam Limited (MDNL) is one of the leading manufacturers of special steels, superalloys and it is the only company that manufactures titanium alloys in India. It manufactures special steels such as martensitic steel, ultra-high strength steel, austenitic steel and precipitation hardening steel and three varieties of superalloys – nickel base, iron base and cobalt base. These special alloys have superior mechanical properties and better workability, which are essential for special applications in aerospace, power generation, nuclear, defence and other general engineering industries.
MDNL produces a wide range of high-value steel products that cater to niche end user segments such as defence, space and power. Established in 1973, the company was started with an aim of achieving self-reliance in the research, development and supply of critical alloys and products of national security and strategic importance. Over the years, the company have emerged as a ‘National Centre for Excellence’ in advanced metallurgical production of special metals and super-alloys in India. With its capacity to manufacture a wide range of advanced metals and alloys under one roof and its ever growing business and operations, MDNL has been a Mini Ratna, Category-I company since 2009.
MDNL is in the process of setting up two new manufacturing facilities in Rohtak and Nellore. It has several certifications, including the ISO 9001:2008 - Quality Management System and AS 9100 C for manufacturing and supply of metals and alloy products. MDNL has continuously posted profits in the last five financial years. On a restated basis, its total revenue has grown at a CAGR of 9.23% from ₹ 5,851.89 million for FY2013 to Rs. 8,330.90 million for FY2017. Its profit after tax clocked a CAGR of 7.68% from Rs. 939.55 million for FY2013 to Rs. 1,263.13 million for FY2017.
- Rs. 423.76 crore to Rs. 438.38 crore; issue of 48,708,400 equity shares,
Fresh Issue – Nil, Offer for Sale – 48,708,400 equity shares, employee reservation - 18,73,400. - 150 equity shares and in multiples thereafter
- QIB - 50% NIB - 15% Retail – 35%
- Rs. 10
- ASBA mandatory (No cheques will be accepted)
- Proposed to be listed on BSE and NSE
- SBI Capital Markets Ltd, IDBI Capital Markets & Securities Ltd.
- Alankit Assignments Limited
- Most advanced and unique facilities.
- Capability to manufacture wide range of advanced products.
- Strong long-term customer relationships.
- Research and development based technology development.
- Highly qualified and experienced management and management systems.
The offer comprises an offer for sale of equity shares.
I. To carry out disinvestment of 48,708,400 equity shares by the selling shareholders, constituting 26% of MDNL’s pre-offer paid-up equity share capital;
II. (i) To achieve the benefits of listing the equity shares on the stock exchanges.
The company will not receive any proceeds from the offer and all proceeds shall go to the selling shareholders.
An initial public offering (IPO)/public issue is when an unlisted company makes either a fresh issue of securities or an offer for sale of its existing securities or both for the first time to the public. This paves the way for listing and trading of the issuer’s securities.
The shares are initially issued in the primary market at an offering price determined by the lead manager(s)/the merchant banker(s) to the IPO.
The primary market consists of a syndicate of investment banks and broker dealers that the lead managers assemble and that allocate shares to institutional, high net worth individuals (HNI) and individual/retail investors.
As far as IPOs are concerned, a price band is a value-setting method whereby a seller indicates an upper and lower cost range, between which the buyers/investors are able to place their bids. The price band's floor and cap provide guidance to the buyers.
It is up to the company to decide on the IPO price or the price band, in consultation with the lead managers.
The basis of IPO price is disclosed in the offer document. The issuer is required to disclose in detail about the qualitative and quantitative factors justifying the IPO price.
The IPO price is normally based on such factors as the company’s financials, products and services, income stream as well as the demand for the shares and current market conditions.
The lead managers must determine a fair offering price, which takes into consideration the need for the company to raise capital while offering the new issue at a price which represents a fair value of the shares.
A Red Herring Prospectus (RHP) is a document submitted by a company (issuer) as part of a public offering or an IPO of securities (either stocks or bonds).
A retail individual investor means an investor who applies or bids for securities of or for a value of not more than Rs 2,00,000.
Yes. He can bid in a book-built IPO for a value not more than Rs 2,00,000. Any bid made in excess of this will be considered in the HNI category.
Yes. Investors can change or revise the quantity or price in the bid using the form for changing/revising the bid that is available along with the application form. However, the entire process of changing or revising the bids shall be completed before the IPO closes.
In case of fixed price issues, investors are intimated about the CAN/Refund order within 10 days of the closure of the IPO.
In case of book built IPOs, the basis of allotment is finalised by the book-running lead managers within two weeks from the closure of the issue. The registrar then ensures that the demat credit or refund as applicable is completed within 6 working days of the closure of the issue.
In the case of book-built issues, the exchanges (Bombay Stock Exchange/National Stock Exchange) display the data regarding the bids obtained (on a consolidated basis between both these exchanges).
The data regarding the bids is also available category-wise.
Investors are entitled to receive a Confirmatory Allotment Note (CAN) in case they have been allotted shares within 6 working days from the closure of a book Built issue. The registrar has to ensure that the demat credit or refund as applicable is completed within 6 working days of the closure of the book-built issue.
The lead managers also publish an advertisement at least in an English national daily with wide circulation, one Hindi national paper and a regional language daily circulated at the place where registered office of the issuer company is situated.
The listing on the stock exchanges is done within seven days from the finalisation of the issue.
Ideally, it would be around three weeks after the closure of the book-built issue.
In case of fixed price issue, it would be around 10 days after closure of the issue.