Mini-ratna speciality alloy maker Mishra Dhatu Nigam (Midhani) today launched a ₹ 438-crore initial public offer through which the government will offload 26 per cent of its holding.

The company has fixed a price band of Rs 87-90 per equity share for the issue that will open on March 21 and close on 23. The entire proceeds from share sale will go to government.

“The company will not receive any proceeds from the offer as all of it will go to the selling shareholder, which is the government,” Dinesh Kumar Likhi, chairman and managing director said.

The share sale will be undertaken on behalf of the President acting through the defence ministry, the company said, adding that 1 per cent of the issue is reserved for employees who, along with retail investors, will get a Rs 3 discount from the above price band.

The government will offer 48,708,400 shares or 26 per cent of the paid-up equity, while the net offer for the public will constitute 46,835,000 shares or 25 per cent.

SBI Caps and IDBI Capital Markets & Securities are the book-running lead managers to the issue.

Set up in 1973, the Hyderabad-based Midhani manufactures special steel, super-alloys and the only manufacturer of titanium alloys in the country.

The company gets over 65 per cent of its customers in the defence ministry and the rest in automobiles and railways.

Its products are widely used in the aerospace, power generation, nuclear, defence and other general engineering industries.

It is setting up a plant in Rohtak in Haryana and an over Rs 3,500 crore joint venture with Nalco to manufacture aluminium alloys at Nellore in Andhra.