Published on Tuesday, March 27, 2018 by Chittorgarh Team
Ever since mega SME IPO process for NSE listing started, MMP Industries Ltd. (MMPIL) (erstwhile known as Maharashtra Metal Powders Ltd.) has been a talk of the town. While on one hand it continued all documentation process for IPO, it also kept exploring new avenues and expansion/diversification on the other hand and thus proved to be a most serious entrepreneurs that are gearing to turn MMP as Money Multiplying Portfolio for one and all. Currently it caters to over 500 customers with no customer concentration. No single customer is contributing more than 10% of its revenue.
MMP Industries IPO (NSE SME) - Everything you want to know in 10 points
It is the biggest primary offer for SME listing on NSE SME Emerge. With 4500000 shares on offer in the price band of Rs. 186-188 the issue size is the biggest primary offer to the tune of Rs. 84.60 crore.
It has attracted Anchor investors who has subscribed for 1281600 shares at a price of Rs.188 per share amounting to Rs. 24.09 crore.
Now the residual portion is opening for subscription by the other investors on 28.03.18 and will close on 04.04.2018.
First ever worldwide venture out of Japan from Toyo Aluminium with MMPIL (74:26 ratio) was signed on 25th April 2016 under the name and style Toyal MMP India Pvt. Ltd. that has gone on stream with commercial production in the month of February 2018.
Its vide range of products in Aluminium is used by Defence, Paint, Construction, Ammunitions, Power transmission sectors and is having on an average 55% market share for its products. It has a proven track record for over 34 years. It started with a capacity of 300 MTPA and has currently total capacity of around 27200 MTPA and has partnership with renowned companies from Belgium, Japan and Germany. Its capacity utilization has gradually increased from 78% in 2015 to 91% in 2017.
Star Circlips & Engineerings Ltd. an associate has joint venture with Seeger of Germany. MMPIL holds 25% in this JV. It manufactures over 800 products that is widely used in automotive industry. Customer list of Star includes Bajaj Auto, TVS Motors, Maruti, Piaggio, Heron Honda, Ford India, M&M etc.
Its customer list included UPL, Solar, IDL, Kansai Nerolac, Asian Paints, HIL, Biltech, Shalimar Paints, Excel Crop Care, Ultratech Cement etc.
Their turnover/net profit (on a standalone basis) for last four fiscals has shown uptrend. Its turnover has increased from Rs. 121.73 cr. in FY 14 to Rs. 203.93 cr. in FY 17 and the net profits from Rs. 2.51 cr. to Rs. 13.84 cr. (including other income of Rs.4.67 cr.) for the said periods. For the first half of FY18 it has earned net profit of Rs. 6.40 cr. on a turnover of Rs. 105.56 cr.
On consolidated basis it has posted turnover/net profits of Rs. 181.21 cr. / Rs. 8.88 cr. (FY16) and Rs. 203.93 cr. / Rs. 16.56 cr. (FY17). FY 17 profit includes exceptional income of Rs. 4.67 cr. For the first half of FY18 it has earned net profit of Rs. 8.06 cr. on a turnover of Rs. 105.56 cr.
User industry is expected to grow at a CAGR of 10% to 26% raising prospects for MMPIL that currently enjoys market share ranging from 40% to 80%.
This mega issue is lead managed by Guiness Corporate Advisors Pvt. Ltd. and Bigshare Services Pvt. Ltd is the registrar to the issue.