Midhani tumbles 2% after reports claim that Centre is set to offload 10% stake via OFS

Midhani was listed in April 2018, after the government sold a 26% stake in the company amounting through an initial public offering (IPO).

Nov 23, 2020 03:11 IST India Infoline News Service

Mishra Dhatu Nigam
Mishra Dhatu Nigam (Midhani) stock is under pressure on Monday's trading after reports stated that the government is looking for divesting stake in the company through an offer for sale.

At around 3.20 pm, Midhani was trading at Rs189.50 per piece down 2.07% on Sensex. The stock has slumped to an intraday low of Rs188.45 per piece on the index.

According to PTI report, the government is planning to sell up to 10 per cent stake in defence PSU Mishra Dhatu Nigam Ltd (MIDHANI) in the current fiscal ending March, an official said.

The official reportedly said that with the opening of the space sector to foreign investment and bringing defence sector under automatic route for 74% foreign direct investment (FDI), MIDHANI shares are expected to attract investors.

Thereby, the official said that the Centre is looking at up to 10% stake dilution in Midhani via offer for sale.

Midhani was listed in April 2018, after the government sold a 26% stake in the company amounting through an initial public offering (IPO). The Centre raised about Rs438cr. 

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