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02 APRIL 2018 AL CIRCLE

MMPIL IPO’s anchor portion oversubscribed; a turning point for aluminium products

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

Old Bridge’s Vantage Equity Fund and Raisonneur Capital jointly subscribed to the entire anchor portion of IPO, issued by Maharashtra based company MMP Industries Ltd. The company was formed in the year 1983 and primarily engaged in manufacturing aluminium powder and paste since then.

The total anchor book reserved in the Initial Public Offering was INR 24.09 crore by the company, out of which Vantage invested INR 20 crore and Raisonneur Capital INR 10 crore, resulting in an over-subscription to the anchor portion by about 1.25 times.

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The company will now issue 45 lakh equity shares at a price band of Rs. 186-188 per share. The minimum lot price is fixed at 600 equity shares. The issue, which will close on April 4, 2018, will mop up INR 85 crore on the upper price band.

So far, many companies had come up with IPOs as high as INR 70 crore on the National Stock Exchange and for Small and Medium Enterprises, as high as INR 58.50 crore raised by Zota Healthcare. But now, SME segment seems to have turned mature to witness an IPO of INR 80-85 crore at the beginning of CY2018 for fund mobilisation.

With this fund, MMPIL intends to set-up a new manufacturing facility for atomised aluminium powder, pyro and flake aluminium powder and aluminium foils. The company even aims at repaying or prepaying a portion of loan facilities with this fund and also use it for general corporate purposes.

With three decades of experience in operation, MMPIL over the time again had invested in Research and development of various grades of aluminium powder and related products and shipped not only within the domestic market but overseas including Europe, Middle-East, Africa and the Asia Pacific. Recently, the company has diversified its business into the field of aluminium conductors and establish a plant with a capacity of producing 1000 million tonnes per month in the first phase.

In respect to the IPO, MMPIL chairman and managing director Arun Bhandari commented, “We are very delighted to close our anchor book successfully with marquee investors from both domestic institutions and FII’s. This is a great start for the IPO."
 


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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