About the Company:
MMP Industries is engaged in manufacturing of aluminium products at locations at and close to Nagpur.
Company’s aluminium product range includes pyro and flake aluminium powders, atomised aluminium powders, aluminium pastes, aluminium conductors (all aluminium, alloy aluminium and aluminium steel reinforced).
From a start up capacity of 300 MTPA in 1983 of pyro and flake aluminium powders, the capacity presently is 7,860 MTPA. In addition, Atomised powder capacity is 7,200 MTPA including for captive consumption and aluminium paste capacity of 1,500 MTPA.
The aluminium conductor capacity is presently 7,200 MTPA.Company is constantly adding more capacities for Powder and Conductors to meet the growing demand of its products.
Products manufactured by the Company:
Aluminium Pyro and Flake Powder &Atomised Aluminium Powder.
Aluminium powders (pyro & flake and atomised) are used in many industrial sectors like construction(AAC Blocks ) and mining (Aluminised slurry explosives), agriculture ( pesticides), defence ( ammunition), fire crackers, railways (thermit portions) etc.
Aluminium pastes are used in automotive, decorative and industrial paints.
Used in Power sector for overhead transmission.
Manganese Oxide and Manganese Di-Oxide (MnO &MnO2) Powder.
Mainly used in Chemical Industries.
Company is proposing to set up a manufacturing facility for the following:
Manufacturing of Atomised Aluminium Powder with the installed capacity of 4800 MTPA
Manufacturing of Pyro and Flake Aluminium Powder with the installed capacity of 1800 MTPA .
Manufacturing of Aluminium Foils with the installed capacity of 5000 MTPA.
Through this diversification into aluminium foils. They will be manufacturing foils for use in pharma packaging, flexible food packaging and foils for use in households.
All their products till date are for industrial usage. Aluminium foils will be Company’s first product to be directly used by consumers.
Post implementation of this project, the manufacturing capacity will increase as follows:
Toyo Aluminium K.K.(Japan)
Company has entered into a Joint Venture with Toyo Aluminium K.K. of Japan for the manufacturing of speciality aluminium pastes in a new company ―Toyal MMP India Private Limited.
Company’s association with Global Industry leader ―Toyo Aluminium K.K., Japan would help in moving up the value chain alongside technological support. Company holds 26% shareholding in this JV Company. The commercial production in this unit has already commenced in February 2018.
AVL Metal Powders nv, (Belgium)
Company will have an on-going technical know-how agreement for manufacture and sale of specific grade of Aluminium powder with AVL Metal Powders nv, Belgium.
The cooperation with AVL Metal Powders nv, Belgium is likely to be major sales growth area.They will further sell atomised aluminimum powder to Toyal MMP India Private Limited on long term basis.
Company will have a strong opportunity to penetrate the South East Asian Market through Toyo Sales Channel for AAC grade concrete powder markets.
Star Circlips & Engineering Limited
In addition, Company holds shareholding in Star Circlips & Engineering Limited (26.06%). Star Circlips & Engineering Limited is the manufacturer of Circlips, retaining rings, washers, shims and formed components used in auto and auto component industries.
- Mr.Arun Bhandari (Designation: Chairman and Managing Director)
- Mr. Lalit Bhandari (Designation: Whole-time Director)
- Mr. Bhinvkaran Jangid (Designation: Whole-time Director)
Promoters Average Acquisition Cost:
|Name of the Promoter||No. of Shares held||Average Acquisition Cost (in Rs.)|
Promoters Stake Pre & Post Issue:
|Shareholder Name||Pre Issue Stake (%)||Post Issue Stake (%)|
|Promoters Group Entities||62.69%||46.02%|
Objectives of the Issue:
- Setting up a new facility for manufacturing of Atomised Aluminium Powder, Pyro and flake Aluminium Powder and Aluminium Foils.
- Prepayment or repayment of a portion of loan facilities availed by the Company
- General Corporate Purposes.
Positives for the Company:
Expansion Plan and Diversification.
Company has planned the expansion by way of setting up of new unit for the manufacturing of Atomised Aluminium Powder with an installed capacity of 4800 MTPA, Pyro and Flake Aluminium powder with an installed capacity of 1800 MTPA and have further planned for diversification by venturing into manufacturing of Aluminium Foils with an installed capacity of 5000 MTPA.
Through this diversification into aluminium foils company will be manufacturing foils for use in pharma packaging, flexible food packaging and foils for use in households.
Diversified and Large Customer Base.
Company has a large customer base in diversified industries with strong customer retention.They cater to diversified base of customers with no single customer with more than 10% of revenues. They have been able to build a large, loyal base of customers spread across various industries.
Financials of the Company:
|(in Crores)||FY 13||FY 14||FY 15||FY 16||FY 17||30th Sept 17|
Valuation of Peer Group Companies:
|Company Name||Face Value||EPS||PE Ratio||RoNW||NAV|
|MMP Industries Limited||10||11.13||16.89||32.25%||51.78|
|Maan Aluminium Limited||10||8.4||20.2||11.3%||44.0|
|Issue Opens on||28th March 2018|
|Issue Closes on:.||04th April 2018|
|Issue Price||Rs.186 – 188|
|Issue Size||Rs.84.6 cr|
|Market Cap||Rs.318.4 cr|
|Listing at||NSE SME|
|Equity Shares Offered||45,00,000|
|Equity Shares Prior to the Issue||1,24,35,075|
|Equity Shares after the Issue||1,69,35,075|
|Finalization of Basis of Allotment||on or Before 9th April 2018|
|Initiation of Refunds||on or Before 10th April 2018|
|Credit of Equity Shares:||on or Before 11th April 2018|
|Listing Date:||on or Before 12th April 2018|
IPO Valuation Parameters:
|Earnings Per Share (EPS)||Price To Earnings ratio (PE)||Return on Net Worth (RoNW)||Net Asset Value (NAV)|
Markets Guruji Opinion:
|IPO View||Apply For:||Expected listing Gain:|
|Check IPO Allotment Status:|
Bigshare Website (Click on the below Link)
|Company Contact Info:|
|MMP Industries Ltd
211, Shrimohini, 345, Kingsway,
Nagpur – 440 001, Maharashtra, India
Tel. No.: +91 712 252 4645 / 253 3585
Fax. No.: +91 712 253 0461
|IPO Registrar Info:|
|BIG SHARE SERVICES PRIVATE LIMITED
1st floor, Bharat Tin Works Building,
Opp. Vasant Oasis, Makwana Road,
Marol, Andheri (East),
Mumbai- 400 059,
Tel. No.: +91 22 6263 8200
|Lead Manager to the Issue:|
|GUINESS CORPORATE ADVISORS PRIVATE LIMITED
18 Deshapriya Park Road,
Kolkata – 700 026, West Bengal, India
Tel. No.: +91 33 3001 5555
Fax No.: +91 33 3001 5531