Midfield Industries Limited IPO closes on July 21

By Representative:
Ahmedabad: Hyderabad-based Midfield Industries Limited ("The Company") proposes to enter the capital markets on July 19, 2010 with an IPO ("The Issue") of 4,500,000 equity shares of Rs 10 each through 100% book building process. The Price Band has been fixed at Rs 126 to Rs 133 and the Issue closes on July 21, 2010. The Issue would constitute 35.10% of the fully diluted post issue paid-up capital of the Company. Brickwork Ratings India Pvt. Ltd has assigned "IPO grading 2" to the Issue. Atherstone Capital Markets Limited is the Book Running Lead Manager to the Issue and Bigshare Services Pvt. Ltd is the Registrar to the Issue.

The Issue is being made through a 100% book building process wherein up to 50% of the Net Issue will be available for allocation on a proportionate basis to Qualified Institutional Buyers. Further, not less than 15% of the Net Issue will be available for to Non-Institutional Bidders and not less than 35% will be available to Retail Individual Bidders.

Midfield Industries proposes to utilize the part of the net proceeds of the issue to fund the expansion of its existing plants as well as to set up new manufacturing facilities. The Company intends to expand its current manufacturing facilities at Hyderabad, Mumbai and Roorke while setting up a new VCI paper facility at Hyderabad and a High Tensile Steel Strapping facility at Sharjah.

Midfield Industries plans to expand the existing manufacturing facility at Hyderabad by setting up PET Strap Stretch Films, PP Strapping, Collated nails- nails making machine, seals manufacturing with an investment of Rs 131.52 million. The Company also proposes to set up a new facility for manufacture of VCI Paper at Hyderabad with an investment of Rs. 41.67 million and expand existing manufacturing facility at Mumbai by setting up Angle Board, Collated Nails, Seals manufacturing, Heat Treatment facility with an investment of Rs. 62.73 million. Further, the plan includes setting up of new facility for manufacturing High Tensile Steel Strapping and seals at Sharjah with an investment of Rs. 127.01 million and expansion of existing manufacturing facility at Roorkee by setting up Angle Board and Collated Nails, Seal facility with an investment of Rs. 15.92 million. Company proposes to augment long term working capital requirement by Rs.53.50 million

The Company's turnover for the year ended 31st March 2010 was Rs 903.71 million and PAT at Rs 81.42 million, as compared to turnover of Rs 834.71 million and PAT of Rs 59.09 million during 2008-09 and turnover of Rs 674.27 million and PAT of Rs 41.60 million in 2007-2008.