Man Infraconstruction IPO to open on Feb 18

BSE | NSE 01/01/70 Are Mutual Funds betting on ?

Man Infraconstruction is entering capital market with an initial public offering (IPO) of 5,625,150 equity shares of Rs 10 each on February 18, 2010.

The issue consists of 225,150 equity shares for subscription by employees. The net issue will constitute 10.91% of the fully diluted post issue paid-up capital of the company.

The price band and the minimum bid lot size will be announced by the company at least two working days prior to the issue opening date. The issue will close for subscription on February 22.

The promoters of the company are Pparag K Shah and Mrs Mansi P Shah. Promoters' group holding will be reduced to 63.48% from 71.61% post issue.

It provides construction services for port infrastructure, residential, industrial, commercial and road infrastructure projects.

It is in the process of constructing a residential complex in the western suburbs of Mumbai with an aggregate area of 1.95 million square feet, a slum rehabilitation authority project in Mumbai consisting of the construction of a township aggregating 5.16 million square feet and the construction of 5,166 tenements at a mass housing project at Pune.

It intends to use the issue proceeds for purchasing of capital equipment.

For the period of nine-month ended on December 31, 2009, the company has reported net profit of Rs 66.44 crore on total income of Rs 381.43 crore. It has debt of Rs 11.27 crore as on that date.

CRISIL has assigned the Grade 3/5 to this IPO, indicating average fundamentals.

The equity shares are proposed to be listed on the BSE and the NSE.

The book running lead managers to the issue are IDFC - SSKI Limited and Edelweiss Capital Limited. Link Intime India Private Limited is the registrar.