Meghmani Organics IPO to open on June 4

The initial public offering of Meghmani Organics Ltd. will open for subscription on June 4 and close June 7.

The manufacturer of pigments and agrochemicals is offering 53,68,421 equity shares in the price band of Rs 17 and Rs 19 per share of Re 1 each.

The issue is being made through 100% book building wherein minimum 60% of the issue will be to qualified institutional buyers. Of this, 5% is reserved for mutual funds.

Of the total issue size, 5,36,842 shares will be for non-institutional investors and 16,10,526 shares for retail.

The company has diversified presence in pigments and agrochemicals, and offers a range of products catering to a diversified customer base. Within pigments, it specialises in green and blue pigments, which have varied end use applications including printing inks, plastics, rubber, paints, textiles, leather and paper.

It has four manufacturing facilities located in the chemical belt of India and enjoys several benefits owing to its integrated multi-functional plants.

The objects of the issue are to finance setting up of a new high performance pigment plant at Vatva, Ahmedabad and a multi-purpose agro-chemicals plant at Panoli.

The company would also use the proceeds to invest in subsidiary, Meghmani Energy Ltd.; finance the 3 MW captive power plant to be located at Chharodi; inorganic growth/ diversification opportunities and working capital requirements.