Toll management firm MEP Infrastructure’s IPO scrapes through led by HNIs & QIBs

The initial public offer of Mumbai-based toll management company MEP Infrastructure Developers Ltd sailed through on the final day with 10 per cent oversubscription, data available with the stock exchanges showed.

MEP Infra’s public issue received bids for about 4.44 crore equity shares against 4.02 crore shares on offer.

The company, promoted by the Mhaiskar family, had filed draft red-herring prospectus (DRHP) with the market regulator in October for its IPO. It had fixed Rs 63-65 as the price band for the IPO to raise as much as Rs 360 crore (about $58.2 million).

MEP Infra plans to use around Rs 291.2 crore towards repayment/pre-payment, of certain debt by one of its subsidiaries, MIPL.

The issue is being managed by IDFC Securities, Inga Capital and IDBI Capital.

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.

The firm 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.

(Edited by Joby Puthuparampil Johnson)

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