Incorporated in 1995, MBL Infrastructures Ltd. (MBL) is engaged in the construction and maintenance of roads & highways, industrial infrastructure projects and other civil engineering projects. MBL is also engaged in steel trading and waste management (ferrous scrap and slag recycling).Objects of the Issue
1) Investment in capital equipments
2) Funding working capital requirements
IPO Grading / Rating
ICRA has assigned an IPO Grade 2 to MBL’s IPO indicating below average fundamentals. ICRA assigns IPO grading on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals.
Highlights
1) The current back log of Rs 612.46 Cr is 1.7 times of the company’s construction business in FY09, thereby, providing revenue visibility. Further, the order book is geographically well diversified with 31% of orders in Delhi & Haryana, 27% in Bihar, 18% in MP and 12% in Assam.
2) Over the years, the company has demonstrated its ability to execute projects without any significant time and cost over run which has resulted in building a favorable reputation among its clients.
3) With an increase in the scale of operations, higher economies of scale and increase in profits, RONW has increased from 23.85% in FY07 to 27.61% in FY09.
Valuation
Book-value per share as on June 30, 2009 is Rs 83.95. Price by Book-value of the company at the lower price band is1.97x and at higher price band it is 2.14x.
Issue Open: Nov 27, 2009 - Dec 01, 2009
Issue Size: 5,700,000 Equity Shares of Rs. 10
Issue Amount: Rs. 94.05 - 102.60 Crore
Face Value: Rs. 10 Per Equity Share
Issue Price: Rs. 165 - Rs. 180 Per Equity Share
Market Lot: 35 Shares
Minimum Order Quantity: 35 Shares
Listing At: BSE, NSE
For our analysis, visit our IPO Center
0 comments:
Post a Comment