Issue price: Rs. 252

Listing Strategy : Book Partial Profits

As the issue was subscribed more than 60 times, the unsatiated demand is likely to influence the listing in secondary market.

The zero debt status of the company is normally unheard of in the Indian construction industry as it is capital intensive. As the company has a diversified business model its revenues also are safeguarded. However, of the Rs. 20,201 million order book as on December 31st 2009, 83 per cent of the orders are from the residential construction sector which remains a key concern. Any slowdown in the residential construction industry will impact the earnings of the company.

Though the company is over-dependent on a handful of clients, it has a secure client base. superior margins and strong funding position. Although, it is unlikely that this company will perform exceptionally over the long run, its expected good listing can be used as a point to book partial profits.   

Background Note:

Man Infra is a Mumbai based company which provides construction services for port infrastructure, residential, industrial, commercial and road infrastructure projects. As on December 31, 2009, the company’s order book, on a consolidated basis, stood at Rs 20,201 million spread across the construction sectors. The company has strong presence in the Mumbai-Pune region though its projects are spread across states of Maharashtra, Kerala, Gujarat, West Bengal, Goa and Tamil Nadu. The company’s clientele includes business organizations like Maersk India, Gateway Terminals India Private Limited, Mundra International Container Terminal Private Limited, Dynamix, DB Realty, Simplex and Gokuldham Real Estate Development Company Private Limited.

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