Mumbai-based toll management company MEP Infrastructure Developers Ltd's shares made lacklustre debut listing at its issue price of Rs 63 each and tanked as much as 12 per cent in intra-day trades on BSE, tracking the broader sell-off in the market on Wednesday.
The scrip ended day 1 at Rs 60.95 a share on the BSE, down 3.25 per cent.
The company had fixed the issue price at the lower end of the Rs 63-65 band due to lukewarm response from the investors.
The company, promoted by the Mhaiskar family, raised around Rs 326 crore through the public issue. Bulk of this will go in reducing debt.
The company follows an asset light business model by focusing on pure toll collection as well as OMT projects on operational roads constructed by third parties. It generates revenue through collection of toll from commuters and under projects acquired by forecasting the traffic volume based on in-house surveys.
It has completed 68 projects, with an aggregate of 122 toll plazas and 783 lanes across 12 states in India.
MEP Infra currently operates 23 toll collection projects with an aggregate of 40 toll plazas, five OMT projects covering 2,530.04 lane kms with an aggregate of 15 toll plazas and one BOT project covering 42.02 lane kms with five toll plazas. These ongoing projects are located across nine states in India.
Its total revenue on a consolidated basis increased from Rs 329.1 crore in FY10 to Rs 1,240.1 crore in FY14, representing a CAGR of 39.32 per cent. Its consolidated EBITDA increased from Rs 6.3 crore to Rs 36.3 crore while its net loss rose from Rs 1.27 crore to Rs 117.5 crore in the same period.