This newly-listed stock spiked 63 pct in just six days

Mishra Dhatu may have a negative listing on the bourses, Midhani share price has been hitting fresh highs for the last six days, rallying as much as 63 per cent during the same period. The stock is up over 38 per cent against its issue price of Rs 90. Mishra Dhatu listed on the bourses on April 4. The recent rally in the stock was triggered by a slew of defence contratcs signed between April 11 to April 14.

Companies such as Larsen and Toubro, Mahindra and Mahindra, Adani Group, Punj Lloyd, Bharat Forge, and BEL etc entered into defence agreements. Mishra Dhatu manufactures special defence alloy and earns 71.6 per cent income from the defence business. At the end of financial year 2017, Mishra Dhatu had Rs 620 crore worth defence orders. 

"Listing gains were not expected on the stock, however, risk reward looks favourable for Mishra Dhatu in the short-term," told Avinash Gorakssakar, HoR, Joindre Capital earlier to Zee Business. 

The initial public offering (IPO) of mini-ratna Mishra Dhatu Nigam (Midhani), which was oversubscribed by 1.21 times, was opened for subscription from March 21 to March 23. 

The public issue of the Midhani IPO to raise Rs 438 crore received bids for 5,90,66,850 shares against the total issue size of 4,87,08,400 shares, data available with the NSE showed. 

The portion set aside for qualified institutional buyers (QIBs) was subscribed 1.96 times, non institutional investors 12 per cent and retail investors 72 per cent.  

The company had fixed the price band of Rs 87-90 for the public offer. 

SBI Capital Markets and IDBI Capital Markets & Securities were the book running lead managers of the issue while Alankit Assignments was the registrar.