Mishra Dhatu Nigam Limited IPO

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(i) Mishra Dhatu Nigam Limited is one of the leading manufacturers of special steels, Superalloys and only manufacturer of titanium alloys in India.
These are high-value products which cater to niche end-user segments such as defence, space and power. The company was established in the year 1973, with an aim of achieving self-reliance in the research, development and supply of critical alloys and products of national security and strategic importance. The company have emerged as a ‘National Centre for Excellence’ in the advanced metallurgical production of special metals and Superalloys in India. The Company have the technological ability to manufacture a wide range of advanced metals and alloys under one roof. With the growth of business and operations, Company has achieved the status of a Mini Ratna, Category-I company in 2009.
There are very few metallurgical plants of its kind in the world, designed to manufacture a wide range of special metals and alloys using integrated and highly flexible manufacturing systems. The company manufactures unique combinations of metal and alloys. 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.
(ii) We manufacture special steels like martensitic steel, ultra-high strength steel, austenitic steel and precipitation hardening steel. We manufacture three varieties of Superalloys – nickel base, iron base and cobalt base. We also manufacture varieties of titanium alloys. Most of the orders executed by our Company are in the nature of an import substitute. We have the competence of developing and manufacturing customised alloys tailor-made to suit the specific requirements of customers for their critical applications. Presently, we conduct our operations at our manufacturing facility in Hyderabad. We are in the process of setting up two new manufacturing facilities in Rohtak and Nellore.

Mishra Dhatu Nigam Limited IPO Stock Quote & Charts

140.35

+0.18%

  • Open: 139.80
  • High - Low: 143.00 - 134.25
  • Previous Close: 140.10
  • Total Traded Volume: 252637
  • Updated On: 21-May-2018

Objects of the Issue:

Objectives of

Mishra Dhatu Nigam Limited IPO

are: (i) To carry out the disinvestment of 48,708,400 Equity Shares by the Selling Shareholder constituting 26% of our Company’s pre-Offer paid up Equity Share capital. (ii) To achieve the benefits of listing the Equity Shares on the Stock Exchanges. Our Company will not receive any proceeds from the Offer and all proceeds shall go to the Selling Shareholder.

Listing Date: Apr 02 2018

Issue Details:

Open Date: Mar 21 2018
Close Date: Mar 23 2018
Total Shares: 48,708,400
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Built Issue IPO
Issue Size: 421.515 Cr.
Lot Size: 150 Shares
Issue Price: ₹ 87-90 Per Equity Share
Retail Discount: ₹ 3 per equity share
Listing At: NSE,BSE
Listing Date: Apr 02 2018

Promoters And Management:

President of India

Capital Structure:

Authorized Share Capital (200,000,000 shares at FV@10) 200 cr
Issued, Subscribed,& Paid-up Share Capital Before Issue (187,340,000 Shares at FV@10) 187.34 cr
Present Issue (OFS) (46,835,000 Shares at FV@10) 46.385 cr
Paid Up Capital after the issue 187.34 cr
(i) Mishra Dhatu Nigam is offering a discount of Rs 3 per equity share on issue price to investors in retail and employee category. (ii) Average cost of Acquistion to the promoters is rs.10.

Company Financials:

 1. Balance Sheet Snippet[ Calculation for FY 16-17]
       (i) Shareholders’ Fund[Equity] Value 7043.4 Million
      (ii) Asset 11010 Million
      (iii) Liability 3967 Million
      (iv) Debt/Equity .56(debt free)
      (v)  Net Worth(Asset- Liability) 7043.44 Million
     (vi)  RONW(PAT/Net Worth) or ROE 18%
     (vii) P/B 2.43[Reasonably priced]
2. Profit n Loss Snippet
     (i) Revenue of last 3 years is growing at CAGR of 11.12%[good]
    (ii) PAT of last 3 years is growing at CAGR of 12.69%[good].
    (iii)Margins(PBT/Reveune): 19-22%[Excellent]
    (iv) Average EPS of 3 years=  6.13
     (v) EPS of FY17-18 post issue=3.09
    (v)  P/E(post issue)=29(fully priced) at the cutoff price of 90
3. Cash Flow Statement
The company is  generating positive cash flow in last 3 years which is quite a requirement for the business to grow in future.
Note- The Company's topline and bottomline of last 6 months ending Sept 2017 has gone down to 50% due to shutdown of its main plant for maintenance. So it will be wise to calculate company PE for FY 17 earnings which comes out to be 13.27.

Comparison With Peers:

There are no comparable listed companies in India engaged in the same line of business as the Company, hence comparison with industry peers is not applicable.

Recommendation:

Review and Recommendation of

Mishra Dhatu Nigam Limited IPO

from our side is: We are maintaining a buy rating for long term in Mishra Dhatu Nigam limited as it is a unique business to be listed in the market.

Company Address:

P.O. Kanchanbagh, Hyderabad - 500 058, Telangana, India. Phone No. +91 040 24340853 Fax: + 91 040 24340214 E-mail: secretary@midhani.com Website: www.midhani.com

Bid Details as on 23-Mar-2018 19:50:01 IST

No.of shares offered No. of shares bid No. of total times
23,417,500 45,859,200 1.96
7,025,250 878,100 0.12
16,392,250 11,840,700 0.72
1,873,400 488,850 0.26
48,708,400 59,066,850 1.21
No.of shares offered No. of shares bid No. of total times
23,417,500 18,080,550 0.77
7,025,250 613,200 0.09
16,392,250 7,620,450 0.46
1,873,400 442,500 0.24
48,708,400 26,756,700 0.55
No.of shares offered No. of shares bid No. of total times
23,417,500 27,778,650 1.19
7,025,250 264,900 0.04
16,392,250 4,220,250 0.26
1,873,400 488,850 0.26
48,708,400 32,310,150 0.66

    First half results are affected with unwarranted situation like maintenance of plant under taken after three plus decades. Management is confident of achieving improved performance once they are back to normalcy after restart of the plant. Based on normal working, issue is priced reasonably. Investors may consider investment for long term.

    The company is coming up with the unique business. So it might attract investor interest. Let see how subscription figure of QIB and HNI go from here.

    The Equity Shares of
    Mishra Dhatu Nigam Limited shall be listed and admitted to dealings on the Exchange in the list of ‘B’ Group of Securities.

    Wednesday, April 04, 2018 ..

    BSE Code: 541195

    NSE: MIDHANI

    ISIN No: INE099Z01011