The Hindu Business Line : Meghmani Organics plans Rs 102-cr IPO

Mumbai May 24 Meghmani Organics Ltd, a manufacturer of pigments and agrochemicals, proposes to enter the capital markets with a public issue aggregating Rs 102 crore.

The issue, which is being made through a 100 per cent book building issue opens on June 4 and closes on June 7. The price band has been fixed at Rs 17-19 per equity share of Rs 1 each.

Power Plant

The proceeds of the issue would be utilised to set up a new high performance pigment plant at Vatva, Ahmedabad for Rs 14.5 crore and an agrochemicals plant at Bharuch for Rs 11.42 crore. In addition, the company will be investing Rs 14.10 crore in its subsidiary Meghmani Energy Ltd to set up a 3 MW captive power plant. The rest of the funds will be utilised to finance working capital needs.

Post-issue, the promoters' stake will come down to 47-48 per cent. The company holds about 90 registrations worldwide for its agrochemicals business and has 415 pending registrations in 56 countries. Clients of the company include multinationals such as Sun Chemicals, the Flint Group, and Valent USA Corporation.

Exports

The company's depositary shares are listed on the Singapore Exchange Exchange Securities Trading Ltd. Currently, 50 per cent of the company's pigment revenues and 90 per cent of its agrochemicals business come from exports. Edelweiss Capital Ltd and IL&FS Investmart Ltd are the book running lead managers to the issue.