Manglam Infra And Engineering IPO: Manglam Infra and Engineering has launched an IPO valued at Rs 27.62 crore, consisting of a new issuance of 49.32 lakh shares. The bidding process for the IPO started on July 24, 2024, and will conclude on July 26, 2024. The allotment of shares is expected to be completed on Monday, July 29, 2024.
The shares will be listed on the NSE SME, with a tentative date of Wednesday, July 31, 2024. The IPO price ranges between ₹53 and ₹56 per share. Retail investors must invest at least ₹112,000 for the minimum application lot of 2000 shares. High Net-Worth Individuals (HNIs) can invest a minimum of 2 lots (4000 shares) for ₹224,000. Whether you’re a seasoned investor or a newcomer to the stock market, this guide will provide you with all the essential information to make an informed decision.
Table of Contents
Understanding IPOs and the Basics of Manglam Infra And Engineering IPO
What is an IPO?
An Initial Public Offering (IPO) is when a company first sells its shares to the public. This process allows the company to raise capital to fund its operations, pay off debt, or expand its business. For investors, an IPO presents an opportunity to buy shares in a company before they become available on the stock market.
Key Details of Manglam Infra And Engineering IPO
Manglam Infra And Engineering IPO is a book-built issue with a total size of Rs 27.62 crores. The IPO consists entirely of a fresh issue of 49.32 lakh shares.
- IPO Dates: The bidding for the IPO opened on July 24, 2024, and will close on July 26, 2024.
- Allotment Date: The allotment of shares is expected to be finalised on July 29, 2024.
- Listing Date: The shares will be listed on the NSE SME on July 31, 2024.
- Price Band: The price band is set between ₹53 and ₹56 per share.
- Lot Size: 2000 shares are the minimum lot size.
Investment Requirements
For retail investors, the minimum investment required is ₹112,000, while for High Net-Worth Individuals (HNIs), the minimum investment is ₹224,000.
Key Participants
- Lead Manager for Book Running: Unistone Capital Pvt Ltd
- Registrar: Bigshare Services Pvt Ltd
- Market Maker: Giriraj Stock Broking
Detailed IPO Timeline and Subscription Details
IPO Timeline
Understanding the timeline of an IPO is crucial for investors. Here’s a breakdown of the key dates for the Manglam Infra And Engineering IPO:
| Event | Date |
| IPO Open date | July 24, 2024 |
| IPO Open date | July 26, 2024 |
| Basis of Allotment | July 29, 2024 |
| Initiation of Refunds | July 30, 2024 |
| Credit of shares to Demat | July 30, 2024 |
| Listing Date | July 31, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on July 26, 2024 |
Manglam Infra And Engineering IPO Shares Offered
The Manglam Infra And Engineering IPO offers a total of 4,932,000 equity shares. Here’s how the shares are distributed:
- Retail Investors: 1,544,000 shares
- Qualified Institutional Buyers (QIB): 882,000 shares
- Non-Institutional Investors (NII): 660,000 shares
Breakdown of Shares Offered
| Category | Shares Offered | Amount (Rs Cr) | Size (%) |
| Anchor Investor | 1,322,000 | 7.40 | 26.80% |
| Market Maker | 524,000 | 2.93 | 10.62% |
| QIB | 882,000 | 4.94 | 17.88% |
| NII | 660,000 | 3.70 | 13.38% |
| Retail | 1,544,000 | 8.65 | 31.31% |
| Total | 4,932,000 | 27.62 | 100% |
Anchor Investor Allocation
A total of 1,322,000 shares are set aside for anchor investors, priced at Rs 56 per share.
| S.No. | Name of Anchor Investor | No. of Shares Allocated | Bid Price Per Share (Rs.) | Anchor Investor Portion (%) | Total Amount Allocated (Rs.) |
| 1 | Persistent Growth Fund | 446,000 | 56 | 33.74 | 24,976,000 |
| 2 | North Star Opportunities Fund VCC | 266,000 | 56 | 20.12 | 14,896,000 |
| 3 | Saint Capital Fund | 250,000 | 56 | 18.91 | 14,000,000 |
| 4 | Ashika Global Securities Private Limited | 180,000 | 56 | 13.62 | 10,080,000 |
| 5 | Vikasa Global Fund PCC | 180,000 | 56 | 13.62 | 10,080,000 |
| Total | 1,322,000 | 100 | 74,032,000 |
IPO Investor Categories
Qualified Institutional Buyers (QIB): QIBs include financial institutions, banks, FIIs, and mutual funds registered with SEBI. Typically, they represent small investors investing through mutual funds, ULIP schemes of insurance companies, and pension schemes.
Non-Institutional Investors (NII): These are retail individual investors (HNIs), NRIs, companies, trusts, etc., who bid for shares worth more than Rs 2 lakhs. Unlike QIBs, they do not need SEBI registration.The NII classification is subdivided into:
- sNII (Small NII): Bids between Rs 2 lakhs and Rs 10 lakhs. One-third of the NII shares are reserved for this subcategory, also known as Small HNI (sHNI).
- bNII (Big NII): Bids above Rs 10 lakhs. Two-thirds of the NII shares are reserved for this subcategory, also known as Big HNI (bHNI).
Retail Individual Investors (RII): These are retail individual investors or NRIs who apply for shares worth up to Rs 2 lakhs.
Employee Category (EMP): A group for qualified workers with a quota set aside for the initial public offering.
Others: This includes eligible shareholders or other investors with a reserved quota in the IPO.
Company Background and Financial Performance
About Manglam Infra and Engineering Limited
Incorporated in 2010, Manglam Infra and Engineering Limited specialises in managing infrastructure projects. The company provides detailed project reports, supervises and controls quality, and handles the operation and maintenance of infrastructure such as highways, bridges, tunnels, and urban buildings. Their services include:
- Design and engineering
- Procurement and construction
- Integrated project management
- Operations & maintenance
- Independent consultancy
Investing in Manglam Infra And Engineering IPO
Geographic Presence and Project Portfolio
Manglam Infra has provided services in various Indian states, including Madhya Pradesh, Jammu & Kashmir, Bihar, Arunachal Pradesh, Jharkhand, Himachal Pradesh, Uttar Pradesh, Manipur, Nagaland, Maharashtra, Assam, Rajasthan, Uttarakhand, and Haryana. To date, they have completed 127 projects, with 116 done independently and 11 through joint ventures.
Employee Details
As of May 31, 2024, the company employs 272 people, 159 of whom are qualified engineers.
Financial Performance
Let’s delve into the financial performance of Manglam Infra And Engineering Limited over the past three years:
| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Assets | 3,318.23 | 2,104.13 | 1,673.32 |
| Revenue | 4,050.79 | 3,478.14 | 2,678.36 |
| Profit After Tax | 676.41 | 554.16 | 332.96 |
| Net Worth | 1,710.20 | 1,025.95 | 778.69 |
| Reserves and Surplus | 443.73 | ||
| Total Borrowing | 447.31 | 225.91 | 186.91 |
Key Performance Indicators (KPIs)
| KPI | Value |
| Market Capitalization | Rs 98.54 Cr |
| ROE | 49.44% |
| ROCE | 44.95% |
| Debt/Equity | 0.26 |
| RoNW | 49.44% |
| P/BV | 4.15 |
| PAT Margin (%) | 16.81 |
IPO Objectives and Subscription Status
Objectives of the Issue
The proceeds from the IPO will be utilised to meet the following objectives:
- To meet the working capital requirements
- For general corporate purposes
As of May 31, 2024, the company’s order book exceeded Rs. 78 crores.
Subscription Status
As of July 25, 2024 (Day 2), the Manglam Infra And Engineering IPO was subscribed 56.87 times. Here’s the breakdown by category:
| Category | Subscription (times) | Shares Offered | Shares Bid For |
| QIB | 4.82 | 8,82,000 | 42,50,000 |
| NII | 46.22 | 6,60,000 | 3,05,12,000 |
| Retail | 91.16 | 15,44,000 | 14,07,70,000 |
| Total | 56.87 | 30,86,000 | 17,55,32,000 |
Anchor Investors
Manglam Infra And Engineering IPO raised Rs 7.40 crore from anchor investors on July 23, 2024. The anchor lock-in periods for 50% of shares end on August 28, 2024, and for the remaining shares on October 27, 2024.
How to Apply for the IPO
Steps to Apply Through Various Platforms
Through Dhan
- Visit the dhan website and log in to Console or open a Demat with the link
- Click the IPOs link after going to Portfolio.
- Find ‘Manglam Infra And Engineering IPO’ and click the ‘Bid’ button.
- Enter your UPI ID, quantity, and price.
- Submit the IPO application form.
- Using your UPI App (net banking or BHIM), approve the mandate.
Applying Through Other Platforms
Additionally, investors have the option to apply online with ASBA (Application Supported by Blocked Amount) or UPI as their payment method. ASBA is available through the net banking of your bank account, while UPI applications are offered by brokers who do not provide banking services.
Financial Analysis and Expert Recommendations
Financial Ratios
| Metric | Pre-IPO | Post-IPO |
| EPS (Rs) | 5.34 | 3.84 |
| P/E (x) | 10.49 | 14.57 |
*Note: The Pre-IPO EPS is calculated based on pre-issue shareholding and latest FY earnings as of March 31, 2024. Post-issue EPS is based on post-issue shareholding and annualised FY earnings of March 31, 2024.
Expert Review
According to Dilip Davda, a market expert, Manglam Infra And Engineering has shown steady growth in its financials and is poised for bright prospects considering the government’s mega spending on infrastructure. He recommends investors to park funds for the medium to long term in this reasonably priced offer.
Contact Information and Useful Links
Company Contact Details
- Address: H.NO.46, Nikhil Nestles Jatkhedi, Hoshangabad Road, University (Bhopal) Huzur, Bhopal – 462026
- Phone: +0755 4289475
- Email: cs@manglaminfra.com
- Website: Manglam Infra
Registrar Contact Details
- Registrar: Bigshare Services Pvt Ltd
- Phone: +91-22-6263 8200
- Email: ipo@bigshareonline.com
- Website: Bigshare IPO Status
Conclusion
Investing in an IPO can be a lucrative opportunity if the company has strong fundamentals and growth prospects. Manglam Infra And Engineering Ltd. appears to be a solid contender with its extensive project experience, robust financial health, and positive market outlook. As always, investors should consider their financial situation, investment goals, and risk tolerance before making any investment decisions.We hope this comprehensive guide helps you navigate the Manglam Infra And Engineering IPO with confidence. Happy investing!
Disclaimer: The information in this “Stock Profile” blog post is for informational purposes only. It is not financial advice. Always consult a qualified expert before making investment decisions.
