Manglam Infra & Engineering Ltd IPO: Review, Date & GMP

Manglam Infra and Engineering Limited IPO - Complete Overview

Manglam Infra and Engineering Limited IPO is an SME book-built issue of Rs.27.62 crores by Manglam Infra and Engineering Limited that was founded in 2010 and helps manage infrastructure projects. They produce thorough project reports, monitor and control quality, and manage the operation and maintenance of highways, bridges, tunnels, and urban structures.

The company provides design, engineering, procurement, construction, and integrated project management services.

The company's services include DPR and feasibility studies, Operations and Maintaining Functions, Project Management Consultancy, Unrestricted Consultancy, Project Planning, Designing, Estimation, Monitoring and Quality Control, Authority Engineer Supervision, Independent Engineer Services, Traffic and Transportation Engineering, Financial Analysis, Technical Audits, Structural Audit, and Bridge and Road Inspection.

Dear readers, we are pleased to provide details about the approaching IPO. The company plans to launch its IPO on July 24, 2024. Let's take a closer look at the IPO's offerings below.

Manglam Infra and Engineering Limited IPO Overview

Manglam Infra and Engineering IPO of Rs.27.62 crores comprises a wholly Fresh Issue of 49.32 lac Shares (amounting to Rs.27.62 crores) out of which 35% is allocated to retail investors, 50% to institutional investors, 15% to non-institutional-investors.

The IPO will be available to investors on July 24, 2024, and conclude on July 26, 2024. The anticipated listing date for the IPO is Wednesday, July 31, 2024, and will be held on the NSE and SME. The price range of each Share is Rs.53 to Rs.56.

If you want to apply for the IPO, Click Here to Open a Demat Account.

 

Company Financial

The company's revenue increased by 16.46%, while profit after tax (PAT) increased by 22.06% during the financial years ending March 31, 2024, and March 31, 2023. 

Below is the synopsis of the company's financial data for the financial year ending March 31, 2024.

• The total revenue of the company is Rs.4,050.79 lac.

• The net worth of the company is Rs.1,710.20 lac.

• The company's EBITDA is Rs.1,037.79 lac.

• The total assets of the company are Rs.3,318.23 lac.
  
  

(Amount in Lacs)

Period	31 Mar 2024	31 Mar 2023	31 Mar 2022
Total Assets	3,318.23	2,104.13	1,673.32
Total Revenue	4,050.79	3,478.14	2,678.36
PAT	676.41	554.16	332.96
Net Worth	1,710.20	1,025.95	778.69
Reserve & Surplus	443.73	-	-
Borrowing	447.31	225.91	186.91

 

 

Revenue Bifurcation

Below is the revenue breakdown for various activities:

(Amount in Lacs)

Net Cash Flow In Multiple Activities	FY 2024	FY 2023	FY 2022
Net Cash Flow Operating Activities	85.49	447.47	365.76
Net Cash Flow Investing Activities	-239.32	-135.48	-234.40
Net Cash Flow Financing Activities	200.82	-321.55	-122.33

Verticals and Project-wise Revenue Breakdown For The Last Three FYs

(Values In Lacs)

Verticals	FY 2024	FY 2023	FY 2022
DPR
Roadways/Highways	202.00	1,167.25	607.78
Bridges	13.73	10.84	56.72
Urban/Buildings Construction	37.24	17.19	-
Supervision And Quality Control
Roadways/Highways	2080.55	1,442.24	1,386.05
Bridges	889.45	445.26	135.44
Urban/Buildings Construction	73.62	41.55	131.95
Operations And Maintenance	719.13 17.87% 9.23%	317.56	263.21
Water Supply	8.64	-	-

 

Geographical Revenue Breakdown

The Objective Of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Working capital requirement.

• Corporate Purposes.

 

 

Peers of Manglam Infra and Engineering Limited

(Figures as of March 31, 2024)

Company Name	Face Value (Rs.)	EPS (Rs.)	P/E (x)
Rudrabhishek Enterprises Limited	10	8.10	23.13

 

Evaluation

The price of this IPO is Rs.53 to Rs.56 for each Share.

Evaluation Of P/E Ratio

Considering the Fiscal 2024, with EPS of Rs.5.34 from the last year, the resulting P/E ratio is 10.48x.

Considering the weighted EPS of Rs.5.18 for the last three years, the P/E ratio is 10.81x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 23.13x.

Particulars	P/E Ratio
Highest	23.13
Lowest	23.13
Average	23.13

In simple words, the P/E ratio of Manglam Infra and Engineering Limited-IPO (10.48x and 10.81x), compared with the industry’s average P/E of 23.13x, has an undervaluation. Hence the price of the Share seems fairly priced for the investors when considered based on the average P/E ratio of the industry.

IPO's Strengths

• Participation in diverse initiatives.

• A diverse range of services and an established track record of efficiency.

• Qualified workforce and experienced management team.

• Consistent financial performance.
  
  

IPO’s Weaknesses

• On government bodies, the company relies heavily when working on infrastructure consultation projects. Failure to acquire new Government tenders could negatively impact its business.

• They do not have direct control over the issuance of new contracts, which affects the company’s income and earnings.

• Failure to meet order book quantities, deadlines, and performance requirements can have a significant negative impact on its financial situation and operations.

• They keep their staff aligned with current workloads and future initiatives. Failure to secure future contracts or delays in acquiring them may lead to increased employee costs.

• In fiscal years 2024, 2023, and 2022, their income from Madhya Pradesh operations was Rs.1,685.04 Lakhs, Rs.1,344.77 Lakhs, and Rs.762.83 Lakhs, accounting for 41.87%, 39.07%, and 29.55% of total revenue, respectively. A decline in income from Madhya Pradesh may negatively impact their business.

 

IPO GMP Today

Manglam Infra and Engineering Limited IPO’s latest GMP is Rs.50.

 

 

Manglam Infra and Engineering Limited IPO Timetable (Tentative)

The IPO is scheduled from July 24 to July 26, 2024, with allotment on July 29, refund initiation on July 30, and listing on July 31, 2024.

Events	Date
IPO Opening Date	July 24, 2024
IPO Closing Date	July 26, 2024
IPO Allotment Date	July 29, 2024
Refund initiation	July 30, 2024
IPO Listing Date	July 31, 2024

 

Manglam Infra and Engineering Limited IPO Details 

The IPO with a Face Value of Rs.10 per Share is set to start on July 24, close on 26 July, and offer a total issue size of 4,932,000 Shares (aggregating up to Rs.27.62 Cr) comprising a whole fresh issue size of 4,932,000 Shares (amounting to Rs.27.62 Cr).

IPO Opening & Closing date	July 24, 2024 to July 26, 2024
Face Value	Rs.10 per Share
Issue Size	4,932,000 Shares (amounting to Rs.27.62 Cr).
Offer for Sale	NA
Fresh Issue	4,932,000 Shares (amounting to Rs.27.62 Cr).
Listing at	NSE, SME
Issue Type	Book Built Issue IPO
Registrar	Bigshare Services Pvt Ltd

 

Manglam Infra and Engineering Limited IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (2000 Shares) amounting to Rs.112000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (4000 Shares) amounting to Rs.224000.

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
HNI (Min)	2 Lots

 

Manglam Infra and Engineering Limited IPO Reservation

Institutional Portion	50%
Retail Share Portion	35%
Non-Institutional Portion	15%

 

Promoters And Management Of Manglam Infra and Engineering Limited IPO

• Yogendra Kumar Singh

• Ajay Verma

• Nisha Singh 

• Seema Verma

Pre-Issue Promoter Shareholding	100%
Post-Issue Promoter Shareholding	-

 

Manglam Infra and Engineering Limited IPO Lead Managers

• Unistone Capital Pvt Ltd

 

 

Dividend Policy

The company has not paid any dividends in the last two fiscals.

 

Conclusion

The company has experienced negative cash flow in financing and investing activities throughout the last few fiscal years. To achieve its goals, the company is currently launching an IPO for the general public.

We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable information about the company's, insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

We believe this blog would be very beneficial to you if you are looking for such information related to this upcoming IPO since this blog would provide you with accurate information about the company's, insights, financials, and past performance. If this informative blog matches your interest, you might be interested in reading our other related useful blogs on our website.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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