No bids by QIBs for Meghmani Organics

On first day of Meghmani Organics IPO, the IPO was undersubscribed, with total bids for 2.56 lakh shares from total issue size of 6 crore shares.

There were no bids by Qualified Institutional Buyers (QIBs). The Non Institutional Investors bid for 5600 shares.

The retail investors bid 2.50 lakh shares, of which 2.04 lakh shares were bid at cut off price and 45,850 share were bid at price.

The issue is priced between Rs 17 – Rs 19 per share and will close on 7 June 2007.

The company has its presence in pigments and agrochemicals, and offers a range of products catering to a diversified customer base. Within pigments, it specialises in green and blue pigments, which have varied end use applications including printing inks, plastics, rubber, paints, textiles, leather and paper.

It has four manufacturing facilities located in the chemical belt of India and enjoys several benefits owing to its integrated multi-functional plants.

The object of the issue is to set up a new high performance pigment plant at Vatva, Ahmedabad and a multi-purpose agro-chemicals plant at Panoli.

The company would also use the proceeds to invest in subsidiary, Meghmani Energy; finance the 3 MW captive power plant to be located at Chharodi; inorganic growth/ diversification opportunities and working capital requirements.