The offer for sale by the Government of India of 4,87,08,400 shares in a price band of Rs 87-90 was subscribed. There was a discount of Rs 3 for retail and eligible employee investors. The issue had opened on Wednesday the 21st of March and closed on Friday the 23rd of March. There was no anchor book as is the practice or system in government issues.

The QIB book was subscribed 1.96 times, the HNI book remained undersubscribed at 0.12 times, retail book was undersubscribed at 0.72 times while Employee reservation was undersubscribed at 0.26 times.

MIDHANI is a niche and one of its kind titanium and super alloy maker and counts on who’s who of industry as its clients. It supplies to defence companies like HAL, Bharat Dynamics and BEL, to ISRO and also companies like BHEL etc.

I believe considering the mad rush of IPO’s in the last fortnight of March it would make sense to look at this company post listing in April when madness in global markets has cooled off.

Full details of subscription are given below: –

Bharat Dynamics Limited or BDL which makes missiles for the defence forces listed on the bourses and had a poor start. The company had through an offer for sale offered 2,24,51,953 equity shares in a price band of Rs 413-428. A discount of Rs 10 per share was available for retail applicants and employees. There was no anchor allotment as the government offerings do not opt for this system as there is discretionary allotment. The issue was from a defence undertaking and hence not open for subscription from FII’s. The issue was subscribed 1.3 times overall. QIB portion was subscribed 1.5 times, HNI undersubscribed 0.50 times, Retail portion subscribed 1.41 times and Employee portion undersubscribed 0.42 times.

The price discovery on the BSE was Rs 36while it was Rs 370 on the NSE. The high of the day was Rs 402.80 on the BSE and Rs 402.70 on the NSE. The low of the day was Rs 360 on the BSE and Rs 362 on the NSE. The traded volume on the two exchanges combined was 45.42 lac shares which was 20.23% of the IPO offer. Delivery volume was 6.94 lac shares which was 15.29% of the traded volume but a mere 3.09% of the IPO offer. The weighted average of the day was Rs 391.46 on BSE and Rs 391.25 on NSE. The close of the day was Rs 390.70 on the BSE, a loss of Rs 37.30 or 8.71%. On the NSE the close was Rs 389.80, a loss of Rs 38.20 or 8.93%.

What is significant is that the closing price was marginally lower than the weighted average. Trading volumes were poor and delivery volumes even lower. The share will take some time to settle down and the global trade war though does not affect BDL in any manner, it would have to pay for it in terms of poor performance post listing.

The company had a listing ceremony on the NSE where Mr V. Udaya Bhaskar, Chairman & Managing Director, Bharat Dynamics Limited and Mr. S. Piramanayagam, Director (Finance) and Chief Financial Officer are visible along with bankers and NSE officials.