MMP Industries Limited IPO

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(i) The company is engaged in manufacturing of aluminium products at locations at and close to Nagpur. Our aluminium product range includes pyro and flake aluminium powders, atomised aluminium powders, aluminium pastes, aluminium conductors (all aluminium, alloy aluminium and aluminium steel reinforced). Our Unit I and Unit IV (NPM Industries) are engaged in the manufacturing of aforesaid Products. Our Unit III (Mars Industries) is engaged in the manufacturing of manganese oxide and di-oxide powders and Unit II (H.M. Engineering) is engaged in job work of sheet metal components for our Group Entity, Star Circlips & Engineering Limited.

(ii) 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), fire crackers, railways (thermit portions) etc. Aluminium pastes are used in automotive, decorative and industrial paints. Aluminium Conductors are consumed by the power sector for laying of overhead transmission lines.

(iii) We have entered into a Joint Venture with Toyo Aluminium K.K. of Japan for the manufacturing of specialty aluminium pastes in a new company ―Toyal MMP India Private Limited. Our association with Global Industry leader ―Toyo Aluminium K.K., Japan would help in moving up the value chain alongside technological support. Our Company holds 26% shareholding in this JV Company. The commercial production in this unit has already commenced in February 2018.

MMP Industries Limited IPO Stock Quote & Charts

218.15

-3.22%

  • Open: 227.00
  • High - Low: 227.00 - 217.70
  • Previous Close: 225.40
  • Total Traded Volume: 15600
  • Updated On: 21-May-2018

Objects of the Issue:

1. Setting up a new facility for manufacturing of Atomised Aluminium Powder, Pyro and flake Aluminium Powder and Aluminium Foils 2. Prepayment or repayment of a portion of loan facilities availed by the Company 3. General Corporate Purposes

Listing Date: Apr 12 2018

Issue Details:

Open Date: Mar 28 2018
Close Date: Apr 04 2018
Total Shares: 4,500,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Built Issue IPO
Issue Size: 84.60 Cr.
Lot Size: 600 Shares
Issue Price: ₹ 186-188 Per Equity Share
Listing At: NSE Emerge
Listing Date: Apr 12 2018

Promoters And Management:

(i) Arun Bhandari, aged 62 years, is the Promoter, Chairman and Managing Director of our Company. He holds a Bachelor’s degree in Technology in Chemical Engineering from the Banaras Hindu University, Banaras, India. He has experience of about 36 years in the manufacture of pyro technique aluminium powder, paste and conductors and also manufacturing of circlips, retaining rings and other carbon steel stampings and formed components. He has been on our Board since February 5, 1981. (ii) Lalit Bhandari, aged 61years, is a Whole-time Director of our Company. He is an under graduate. He has been associated with our group of companies since 1981 and has worked at various positions and has experience of about 35years in the aluminium powder and paste business. He has been on our Board since August 1, 2008.

Company Business:

The Company has following Joint Ventures: (i)Star Circlips & Engineering Limited Star Circlips & Engineering Limited (“SCEL”)was incorporated on March 21, 1974 under the Companies Act, 1956.  SCEL is engaged in the business to buy, sell, manufacture, produce, crush and deal in metal powders like aluminium, zinc, copper, iron, brass, ferro-manganese, ferro-silicon and other ferro alloys and metal scraps, sheet metal components, circlips, washers, rings, zinc plating for automotive and other industries. (ii) Mayank Fasteners Private Limited Mayank Fasteners Private Limited(―MFPL)was incorporated on December 2, 1987 as a private limited company under the Companies Act, 1956. MFPL is engaged in the business of developing and dealing in properties and to purchase, acquire, lease, exchange, hire, dispose of any land, building, house, hereditaments undertakings business concerns, mortgages, rights, any estate and interest therein and to deal in all types of movable and immovable properties. (iii) Toyal MMP India Private Limited Toyal MMP India Private Limited (―Toyal MMP) was incorporated on May 24, 2016 as a private limited company under the Companies Act, 2013. Toyal MMP is joint venture between Toyo Aluminium K. K., Japan and our Company. Toyal MMP is engaged in the business of manufacturing or production of aluminium paste in India for sale in the territory and other countries as maybe decided by the board of directors of Toyal MMP in accordance with the global marketing and sales strategy of Toyal group and the business of importing and selling aluminium paste/flake, other surface treated aluminium paste/flake, aluminium powder, aluminium alloy powder, aluminium nitride, stainless flake, glass flake, pigments, inks and resin compound in India. (iv) Rohini Horticulture Private Limited Rohini Horticulture Private Limited (―RHPL) was incorporated on December 12, 1994 as a private limited company under the Companies Act, 1956. RHPL is engaged in the business of growers, farmers, harvesters, proprietor, agents, processors, sellers, buyers, extractors, cultivators, distillators, importers, exporters and dealers of agricultural, horticultural, and floricultural products and any other articles produced from land. (v) Star Autoplast Private Limited Star Autoplast Private Limited (―SAPL) was incorporated on May 11, 2007 as a private limited company under the Companies Act, 1956. SAPL is engaged in the business of manufacturing, selling, exporting, testing, trading in all kinds of injection moulded plastics, blow moulded plastics, rubber and rubber products for plastic assembly, automobile and engineering and consumer application and business of assembling plastic products with metal insert, rubber insert.  

Capital Structure:

Authorized Share Capital ( 2,00,00,000 shares at FV@10) 20 cr
Issued, Subscribed,& Paid-up Share Capital Before Issue (1,24,35,075   Shares at FV@10) 12.43 cr
Present Issue (45,00,000 Shares at FV@10) 4.5 cr
Reservation for Market Maker ( 2,25,000 Shares at FV@10) 22.25 lakh
Net Issue to Public (45,00,000-2,25,000=  42,75,000 Shares) 4.275 cr
QIB Quota-21,37,500 50%
HNI Quota-Not less than 6,41,250 15%
Retail Quota-Not less than 14,96,250 35%
Paid Up Share Capital after the issue 16.93 cr

Company Financials:

 1. Balance Sheet Snippet[ Financials as on Sept 2017]
       (i) Shareholders’ Fund[Equity] Value 5888.04 lakh
      (ii) Asset 12202.14 lakh
      (iii) Liability 6314.1 lakh
      (iv) Debt/Equity 1.07(moderate)
      (v)  Net Worth(Asset- Liability) 5888.04 lakh
     (vi)  RONW(PAT/Net Worth) 13%
     (vii) P/B 3.96
2. Consolidated Profit n Loss Snippet (i) The Revenue of the company in last 2 years is growing at CAGR of 8%. (ii) The consolidated profit of the company considering all group entities. FY16: 8.88 cr, FY17:16.56cr, and FY18 :8.06cr( First six month). (iii) Margins(PBT/Reveune): 6 to 9% in last 2 years. iv) Annualized EPS(post issue)=  9.52[Excellent]. (v)  Annualized P/E(post issue)=20[reasonably priced] at the cutoff price of 188
3. Consolidated Cash Flows Statement
Particulars Sep-17 FY17 FY16
(i) Net Cash Generated from Operation 318.69 1087.25 1421.43
(ii) Net Cash Generated from Investment -204.4 -773.97 -314.93
(iii) Net Cash Generated from Financing Activity -257.93 -289.03 -977.72
(iv) Total[ (i)+(ii)+(iii) ] -143.64 24.25 128.78
(v) Cash and Cash Equivalents at the Beginning of the Year 171.63 147.38 18.9
(vi) Cash and Cash Equivalents at the end of the Year 27.99 171.63 147.68

Comparison With Peers:

Name of the Company FV EPS PE RONW
MMP Industries Limited 10 9.52 20 13%
Mann Aluminium Limited 10 8.4 20.2 11.30%

Recommendation:

Rating: 6/10. 1-5: Fair 5-7: Good 7-10: Excellent

Company Address:

MMP Industries Limited 211, Shrimohini 345, Kingsway, Nagpur 440 001 Phone: +91 712 252 4645/ 253 358 Fax: +91 712 253 0461 Email: companysecretary@mmpil.com Website: www.mmpil.com

Bid Details as on 04-Apr-2018 19:30:00 IST

Category No.of shares offered No. of shares bid
2,250,000 1,930,200
2,250,000 1,768,200
- -
4,500,000 3,698,400
QIBs Yes
QIBs+HNIs Subscription 0.39X
Retail Subscription 0.79X
Total Subscription 0.82X