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The initial public offer of road toll management company MEP Infrastructure Developers Ltd opens on Tuesday, and will run till Thursday. The company hopes to raise ₹324 crore by issuing 5.14 crore shares of face value of ₹10 each at a price band of ₹63-65.
The minimum bid lot is 225 equity shares and thereafter in multiples of 225.
The issue is being made through the book-building process wherein at least 75 per cent of the issue will be allotted to qualified institutional buyers.
Since the company is yet to turn profitable, only 10 per cent of the issue will be available to retail investors.
The company intends to use the proceeds of the fresh issue to repay loans of over ₹262 crore while the remaining will be used to general corporate purposes. The company is promoted by Dattatray Mhaiskar, Jayant Mhaiskar and Ideal Toll and Infrastructure Pvt Ltd. As of March, MEP operates 18 toll collection projects, five operate-maintain-transfer projects and one build-operate-transfer project across ten States. Its projects are awarded by NHAI and State road transport agencies.
IDFC Securities, Inga Capital and IDBI Capital Market Services are the book running lead managers to the issue.
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