Wednesday, August 4, 2010

Midfield Ind IPO - Analysis, Recommendation, Subscription, Allotment, Listing

Analysis:
Midfield Industries, a provider of comprehensive end to end packaging solutions, is coming out with a public issue on July 19, 2010. The company intends to raise around Rs. 60 crore by offering 45 lakh shares through the issue.

The company provides packaging consumables like high tensile steel strapping in various dimensions and strengths, different seals for different applications, collated nails & corner boards being used for general and the end of line packaging of goods by varied industries. It also provides comprehensive end to end packaging solutions. Currently, the company caters to companies across wide spectrum of industries like steel, aluminium, glass, copper, paper, automobile, white goods and refractory etc.

Midfield Industries IPO will close on July 21. The company has decided a price band of Rs 126-133 per share for the issue.

These issue proceeds will be used for expansion of capacities at the existing plants; setting up new facilities and augmenting long term working capital requirement of the company.

The book running lead manager to the issue is Atherstone Capital Markets Limited and Bigshare Services Private Limited is the registrar.

Recommendation:
There is no clear trend emerging on the stock markets. The world stock markets have taken a beating but Indian stock markets continue to be stable. Not sure if it is a sign of a bigger fall later on. Technofab had a good listing but that is the only IPO in recent times that had a decent listing. Though Midfield Industries is a good company from a growth perspective, the IPO is not cheap and considering the turbulence in markets with looming danger of 2nd dip, might not be worth taking risk for. We would not recommend this IPO at this stage.

Subscription:
Midfield Industries IPO subscription has started on a good note and ended on a superb note. The IPO got subscribed 13 times. At the close of the IPO,
QII segment got subscribed by 1.86 times
NII segment got subscribed by 48.41 times
Retail segment got subscribed by 13.51 times

Allotment:
Click here to check if you have been alloted Midfield Industries shares!

Listing:
Midfield Industries listed today at Rs 159.4 on the Bombay Stock Exchange, at a premium of 19.9% over issue price of Rs 133 per share. The stock has touched an intraday high of Rs 174.90 and low of Rs 150 before closing at Rs 163.05, up 22.6% over its issue price of Rs 133.


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