MBL Infrastructure to list on 11 January 2010

The IPO was priced at Rs 180 per share

Construction firm MBL Infrastructure will debut on the stock exchanges on Monday, 11 January 2010. The company had fixed the issue price at the top end of the Rs 165 to Rs 180 per share price band.

The issue price of Rs 180, discounts the the company's year ended March 2009, consolidated EPS of Rs 15.70, by a PE multiple of 11.46.

MBL's initial public offer (IPO) closed on 1 December 2009, with total bids for 95.77 lakh shares as against 48.6 lakh shares on offer. The qualified institutional buyers category was subscribed 3.34 times, non-institutional investors category was subscribed 2.64 times, retail individual investors category was subscribed 0.39 times and employee reservation category was subscribed 0.13 times.

Out of the total issue size of 57 lakh shares, 8.4 lakh shares were allotted to anchor investors, which includes 4.2 lakh shares allotted to Reliance Capital Trustee Company's Reliance Infrastructure Fund and 4.2 lakh shares were allotted to The GMO Emerging Illiquid Mauritius Fund at Rs 182 per share.

MBL Infrastructures is engaged in the business of construction and maintenance of roads and highways, industrial infrastructure projects and other civil engineering projects for various government bodies and other clients. It is also engaged in steel trading and waste management at major steel plants.

The company intends to use the issue proceeds to meet capital expenditure on procurement of construction equipments, funding working capital requirements and meeting general corporate requirements.

As per company's consolidated result, net profit rose 76.2% to Rs 27.4 crore on 74.72% rise in sales to Rs 513.64 crore in the year ended March 2009 over the year ended March 2008.