'Subscribe' to Man Infraconstruction, says Nirmal Bang

MUMBAI: Nirmal Bang has recommended to ‘Subscribe’ to the initial public offering of Man Infraconstruction. The company will enter the IPO market on Thursday with issue of 56,25,150 equity shares of Rs 10 each through a 100% book building route. The price band of the IPO is fixed at Rs 243-252. The issue closes Monday.

“At the upper band of the issue price of Rs. 252 per share MIL is offered at a P/E of 14.1x and EV/EBITDA of 7.6 (based on the annualized earnings of 9M FY10) which is in line with the industry average. MIL is all set to capture opportunity in high growth construction industry with zero debt, high net operating cash flow generation and health order book. As such we recommend to subscribe to the issue,” said Nirmal Bang report.

The company will raise around Rs 141.75 crore at the upper end of the price band. The proceeds will be utilised to purchase capital equipment and general corporate purposes.

CRISIL has assigned IPO Grade ‘3/5’ to the IPO indicating that the fundamentals of the issue are average relative to other listed equity securities in India.

The book running lead managers to the issue are Edelweiss Capital Limited and IDFC-SSKI Limited.