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Meghmani Organics IPO subscribed 23 times
Friday, June 8, 2007
Meghmani Organics, engaged in the manufacture of Pigments and Agrochemicals, has received good response from investors, especially retail and foreign institutional investors.
A 536.84 lakh issue has received 1.39 billion bids, which includes 41.79 crore bids at cut off price.
The issue was oversubscribed 23.19 times, as per NSE website.
The issue closed for subscription with a public issue aggregating Rs 1020 million with a price band of Rs 17 to Rs 19 per equity share of Re 1 each.
The issue is being made through 100% book building process wherein at least 60% of the Issue shall be allotted on a proportionate basis to qualified institutional buyers (QIBs). 5% of the QIB portion shall be available for allocation on a proportionate basis to mutual funds only. If at least 60% of the issue is not allotted to QIBs, then the entire application money will be refunded. Further, up to 10% of the issue shall be available for allocation on a proportionate basis to non institutional bidders and up to 30% of the issue shall be available for allocation ona proportionate basis to retail individual bidders, subject to valid bids being received at or above the Issue Price.
The Company has 4 manufacturing facilities located in the chemical belt of India and enjoys several benefits owing to its integrated multi-functional plants.
The company's pesticide formulations sold under brands such as Megastar, Megacyper, Courage and Proven are recognized brands in the Indian market. The Meghafast brand is also a recognized brand name with multinational pigment consumers.
The objects of the issue are to finance the setting up of a new high performance pigment plant at Vatva, Ahmedabad and a multi-purpose agro-chemicals plant at Panoli. Further the company would use the issue proceeds to invest in its subsidiary, Meghmani Energy Limited to finance the 3 MW captive power plant to be located at Chharodi, inorganic growth/ diversification opportunities and working capital requirements.
IL&FS Investsmart and Edelweiss Capital are the book running lead managers for the Issue.
A 536.84 lakh issue has received 1.39 billion bids, which includes 41.79 crore bids at cut off price.
The issue was oversubscribed 23.19 times, as per NSE website.
The issue closed for subscription with a public issue aggregating Rs 1020 million with a price band of Rs 17 to Rs 19 per equity share of Re 1 each.
The issue is being made through 100% book building process wherein at least 60% of the Issue shall be allotted on a proportionate basis to qualified institutional buyers (QIBs). 5% of the QIB portion shall be available for allocation on a proportionate basis to mutual funds only. If at least 60% of the issue is not allotted to QIBs, then the entire application money will be refunded. Further, up to 10% of the issue shall be available for allocation on a proportionate basis to non institutional bidders and up to 30% of the issue shall be available for allocation ona proportionate basis to retail individual bidders, subject to valid bids being received at or above the Issue Price.
The Company has 4 manufacturing facilities located in the chemical belt of India and enjoys several benefits owing to its integrated multi-functional plants.
The company's pesticide formulations sold under brands such as Megastar, Megacyper, Courage and Proven are recognized brands in the Indian market. The Meghafast brand is also a recognized brand name with multinational pigment consumers.
The objects of the issue are to finance the setting up of a new high performance pigment plant at Vatva, Ahmedabad and a multi-purpose agro-chemicals plant at Panoli. Further the company would use the issue proceeds to invest in its subsidiary, Meghmani Energy Limited to finance the 3 MW captive power plant to be located at Chharodi, inorganic growth/ diversification opportunities and working capital requirements.
IL&FS Investsmart and Edelweiss Capital are the book running lead managers for the Issue.
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Investment in equity shares has its own risks. Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that we consider reliable. I, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and I am not responsible for any loss incurred based upon it.& take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations given in this blog.
