MEP Infrastructure Developers IPO subscribed 18% on day one

Gets bids for 70.83 lakh shares

April 21, 2015 5:50 IST | capital market

The initial public offer (IPO) of MEP Infrastructure Developers received bids for a total of 70.83 lakh shares on the first day of bidding for the IPO today, 21 April 2015, compared with up to 5.14 crore equity shares on offer, as per data from the National Stock Exchange (NSE). Since the company has already assigned 1.11 crore equity shares for allotment to anchor investors, the remaining up to 4.03 crore shares are on offer now through the book-building route. The IPO was subscribed 18%. The IPO closes on Thursday, 23 April 2015.

MEP Infrastructure Developers yesterday, 20 April 2015, raised Rs 72.40 crore by allotting 1.11 crore equity shares to a total of four anchor investors. The pricing of the shares to the anchor investors was at Rs 65 per share, which is the top end of the price band of Rs 63-65 for the IPO. HDFC Mutual Fund was allotted a total of 30.77 lakh shares under its two mutual fund schemes, Tata Offshore India Opportunities Scheme was allotted 11.53 lakh shares, Prime India Opportunity was allotted 23.08 lakh shares and EM Resurgent Fund was allotted 46 lakh shares.

The company intends to utilize major proceeds of the IPO to repay borrowings from financial institutions. MEP Infrastructure Developers (MEP) is among the leading players in tolling operations in the road infrastructure sector. The company's focus is on pure toll collection projects as well as OMT (Operation, Maintenance and Toll) collection projects, which involve maintenance obligations in addition to toll collection on operational roads including highways constructed by third parties. A significant portion of the company's revenue is generated from the five Mumbai entry points, of which the company undertakes maintenance of and collection of toll.

On consolidated basis, MEP reported a net loss of Rs 121.41 crore on net sales of Rs 1197.91 crore for the year ended 31 March 2014 (FY 2014). The company reported net loss of Rs 97.30 crore on net sales of Rs 1114.32 crore for the seven months ended October 2014.

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