MMP Industries Limited (MMPIL) is Nagpur, Maharashtra based company. MMPIL is into manufacturing of aluminium products. MMPIL’s aluminium product range includes pyro as well as flake aluminium powders, aluminium pastes, atomised aluminium powders, aluminium conductors etc. The all aluminium, alloy aluminium and aluminium steel reinforced from this company. MMPIL’s new issue is knocking the doors of the stock exchanges. So we checked the MMP Industries DRHP and considered the date, price and financial data of the issue to post our MMP Industries Limited IPO Review for you.
About MMP Industries Limited IPO :
- IPO Opens on – March 28, 2018.
- IPO Closes on – April 4, 2018.
- Face Value – Rs. 10 Per Equity Share.
- Issue Price – Rs 186 – Rs 188 Per Equity Share.
- Issue Type – Book Built Issue IPO.
- Market Lot – Nil.
- Minimum Order Quantity – Nil.
- Retail Allocation – 50%
- Issue Size – 4,500,000 Equity Shares of Rs 10 aggregating up to Rs [.] Cr.
- Listing Exchange – NSE SME Exchange.
- Draft Prospectus – Download.
Objectives of the issue:
- Setting up a new facility for manufacturing of Atomised Aluminium Powder, Pyro and flake Aluminium Powder and Aluminium Foils.
- Prepayment or repayment of a portion of loan facilities availed by this company.
- General Corporate Purposes
About The Company –
- MMP Industries Limited’s product like aluminium powders (pyro, flake and atomised) are used in many industrial sectors like construction (AAC Blocks) and mining (Aluminised slurry explosives), agriculture (pesticides), defence (ammunition), firecrackers, railways (thermit portions) etc.
- The aluminium pastes of the product of this company are used in automotive, decorative and industrial paints.
- Aluminium conductors of this company are consumed by the power sector for laying of overhead transmission lines.
- This company will be manufacturing foils for use in pharma packaging, flexible food packaging and foils for use in households.
- Aluminium foils will be the first product of this company which is directly used by consumers.
- The products of this company are exported across the globe to countries in Europe, Middle-East, Africa and the Asia Pacific.
Promoters of the company :
- Arun Bhandari, aged 62 years, is the Promoter, Chairman and Managing Director of this company.
MMP Industries Limited IPO Review: MMPIL has doubled their profits from the FY 2016 to FY 2017. Their profits as declared after the first two quarters of the running financial year is also in tandem with last financial years performance. At the issue price of Rs 186 – Rs 188 the company has a PE ratio of 20. The PE ratio average for the industry is 35. So it seems that the issue is priced reasonably as per the industry standards. Our MMP Industries Limited IPO Review has a NEUTRAL view on this issue with POSITIVE bias. Cash-rich investors can subscribe to MMPIL IPO for a mid-term to long-term view.