Manaksia ends 5% higher on debut

At Rs 168.10 on BSE

Manaksia settled at Rs 168.10 on BSE, a premium of 5.06% over the IPO price of Rs 160.

On BSE, 1.22 crore shares changed hands in the counter.

The stock debuted at Rs 200, a premium of 25% over the IPO price. It touched a high of Rs 248.70 and low of Rs 161.55.

The company had fixed the issue price at the top end of the Rs 140-160 price band. At the current price of Rs 168.10, the PE multiple works out to 12.73, based on the year ended March 2007 EPS of Rs 13.20.

The public issue of Kolkata-based Manaksia ended on 19 December 2007. The IPO was subscribed 9 times. It received bids for 13.61 crore shares against 1.55 crore shares on offer. The qualified institutional buyers portion was subscribed 13.07 times, the retail segment 5.08 times, and the non institutional investors portion 2.72 times.

Manaksia’s business is spread across aluminium sheets, galvanised steel sheets, mosquito coils and metal packaging products. The flat aluminium products are partly used for captive purposes to make metal containers and caps, and the rest is supplied to auto companies like Maruti Suzuki. Galvanised corrugated steel sheets are mainly used in the household sector in Nigeria.

The company plans to use the net proceeds of the IPO for expansion of the metals business at Haldia in West Bengal. A portion of money would also be used to pre-pay a certain amount of term debt and for general corporate purposes.

Manaksia reported a net profit of Rs 92.06 crore on revenue of Rs 827.78 crore in the year ended March 2007.