MBL Infra gets Rs 15 cr from anchor investors

MBL Infrastructures, an integrated infrastructure construction and project development and maintenance company, has received a commitment of Rs 15 crore on the eve of its about Rs 100-crore IPO.

The anchor investors are Reliance Infrastructure Fund and GMO emerging liquid fund. Both of them have been allocated 50% i.e. Rs 7.5 crore at the upper band of Rs 180. Thus, the anchor investor portion got fully subscribed.
 
Another notable aspect of the company is that none of the existing investors have sold their stakes which also shows their confidence in the future of the company.

MBL Infrastructures will enter the capital market tomorrow, offering 57,00,000 equity shares of Rs 10 each at a price band of Rs 165-180.This issue is being made through a 100% book building process.

Motilal Oswal Investment Advisors Private Ltd. is the book running lead manager. The issue will close on December 1, 2009. Of the 57 lakh shares, equity shares up to 1, 00,000 will be reserved for the company’s employees.

The main purpose of the IPO is to invest in capital equipments, and working capital requirements. The IPO size will be approximately Rs 100 crore. Out of which MBL has projected a capital expenditure plan of approximately Rs 55 crore to add to its existing large fleet of equipments. The ownership of capital equipments would strengthen MBL’s execution capacity for complex projects and would be economical in the long run.

MBL has successfully completed the execution of the 114 km BOT project of Seoni- Balaghat- Gondia in the State of Madhya Pradesh.

MBL had a turnover of Rs 505 .8 crore in FY09 with a PAT of Rs 27.4 crore. In first quarter ended June 2009, company achieved a turnover of Rs 149 crore with a PAT of Rs 8.4 crore.