Manjushree Extrusions

Manjushree Extrusions IPO was recently launched in the month of January, 2008. Previously, the company had launched an IPO in 1995 to meet the expenses related to the construction of a manufacturing unit in different parts of the country. The equity shares introduced recently were on a "rights-cum-follow-offer". The details of the Issue are documented below.

Headed by Surendra Kedia and Vimal Kedia, Manjushree Extrusions or MEL, is involved in manufacturing products of plastic packaging like jars as well as containers for multinationals. These jars and containers are mainly used in agrochemical, food processing, pharmaceuticals and FMCG(fast moving consumer goods) sectors. Products come under the brands of Thermopet, Duraflex and Polypet.

The first IPO was in September, 1995:

Earlier, in the year 1995, Manjushree Extrusions had launched initial public offer (IPO) for financing a project for establishing a unit for manufacturing PET (polyethylenetelephthalate) containers.

Details of IPO launched in the year 1995:

The total number of equity shares launched were 42,00,000. Each share was priced at Rs 10(for cash). It sold at premium of Rs 2.50 per share. The total amount was Rs 5.25 crore.

Listing of shares:

These shares were listed on the stock exchanges of Guwahati, Ahmedabad and Kolkata. They do not trade on these exchanges. It also proposes to trade shares on the BSE or the Bombay Stock Exchange.

Manjushree Extrusions IPO in 2008:

Manjushree Extrusions or MEL recently launched equity shares on "rights-cum-follow-offer".

Details of the 2008 IPO:

MEL launched as many as 42,10,800 equity shares for Rs 10 each(for cash). The equity shares were at a premium of Rs 20 for each share amounting to Rs 12.63 crore.

There was a follow on public offering of as many as 51,26,100 equity shares, each of Rs10.(for cash). Equity shares were at a premium of Rs 35 for every share amounting to Rs 23.07 crore.

Important dates of the 2008 Issue:

The rights issue opened on 7th January, 2008 and closed on 6th February, 2008. The public offer opened on 31st January, 2008 and closed on 6th February, 2008.

Objectives of the IPO:

From the fund raised, approximately, Rs 42.14 crore would be made use of for the expansion as well as diversification for building a manufacturing unit, about Rs 8.70 crores would be utilized for meeting the margin of working capital and the remaining amount would be used for meeting expenditure related to the Issue.

Issue's Lead manager:

The lead manager of the Issue is Centrum Capital Ltd.