MEP Infrastructure's Rs 324 cr IPO opens tomorrow

Toll road firm MEP Infrastructure Developers today said it plans to raise Rs 324 crore through initial public offer (IPO), mainly to repay its debt.
The issue, which will be listed on both NSE and BSE, will open tomorrow and close on April 23. The Mumbai-based company has fixed Rs 63-65 per share price band for the IPO.
"We are raising Rs 324 crore which we plan to largely utilise for repayment of loans borrowed by our subsidiary MIPL and for general corporate purpose," MEP Infrastructure Vice- Chairman and Managing Director Jayant Mhaiskar told reporters here.
According to the company, MIPL has a debt of nearly Rs 2,775.52 crore on its books, as on January 31. Over Rs 262 crore from the net proceeds will be utilised for part payment of these loans.

"We believe that such repayment will help reduce our outstanding indebtedness and debt servicing costs on a consolidated basis and enable utilisation of our accruals for further investment in business growth and expansion," MEPL Executive Director Murzash Manekshana said.
He further said that the company is looking at long-term toll contracts to be bid out by the National Highways Authority and State Governments.

"We are basically looking at opportunities in long- term toll contracts. There are also a lot of opportunities where private investors are taking over road BOT or EPC projects and looking at specialised tolling and maintenance operators. We are in talks with such players and evaluating proposals closely for future growth of the business," Manekshana added.

The issue is being managed by IDFC Securities Ltd, Inga Capital Pvt Ltd and IDBI Capital Market Services Ltd.
The company, along with its subsidiaries, has operated 68 projects with an aggregate of 122 toll plazas and 783 lanes across 12 states.