/MMP Industries IPO's anchor portion oversubscribed

MMP Industries IPO's anchor portion oversubscribed

Old Bridge’s Vantage Equity Fund and Raisonneur Capital have together subscribed to the entire anchor investor portion of MMP Industries Ltd (MMPIL) initial public offer.

The total anchor book reserved in the IPO was Rs 24.09 crore. Of this, Vantage invested about Rs 20 crore while Raisonneur Capital put in a bid for Rs 10 crore leading to an anchor portion over-subscription of 1.25 times.

MMPIL, primarily into manufacturing of aluminium powder and aluminium pastes, will issue 45 lakh equity shares at a price band of Rs 186-188 per share. The minimum lot size is fixed at 600 equity shares. The issue, which closes on April 4, will mop up Rs 85 crore on the upper price band. Incidentally, MMPIL’s IPO is the largest so far on NSE Emerge.

The company plans to use the proceeds to set up a new manufacturing facility for atomised aluminium powder, pyro and flake aluminium powder and aluminium foils, prepayment or repayment of a portion of loan facilities and general corporate purposes. It plans to target infrastructure, explosives, paints and agriculture sectors with its products.

Commenting on the IPO, MMPIL chairman & managing director Arun Bhandari said: “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.”

He further added that, “the funds raised from the IPO are going to give us growth capital required for expanding our capacities, adding new products and reducing finance cost.”

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Markets-The Economic Times