Manglam Infra and Engineering shares surge 90% on NSE SME debut

Manglam Infra and Engineering made a fabulous market debut on the NSE SME platform Wednesday, with its share prices shooting up 90 per cent over the issue price. It opened at Rs 106.4, way higher than the issue price of Rs 56.

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The shares of the company were commanding a premium of Rs 45 in the unlisted market before listing. The IPO of Manglam Infra and Engineering comprises a fresh sale of 49.32 lakh equity shares and got subscribed over 300 times, possibly because of robust interest from noninstitutional investors.

The net proceeds of the IPO will be used for working capital requirements and other general corporate purposes.

Manglam Infra and Engineering is an infrastructure consultancy that undertakes a variety of project management consultancy works. The company carries out DPR, SQC, and O&M of roads, bridges, tunnels, and urban development projects.

The company also executes projects on an independent basis and through joint ventures and MoUs with other industry players. According to its RHP, Manglam Infra and Engineering has completed 127 projects out of which 116 were undertaken independently while 11 were through joint ventures and MoUs. Currently, there are 45 ongoing projects being undertaken by the company. It occasionally also avails itself of third-party service providers to fulfill certain needs of its contracts.

Its order book, comprising revenues outstanding to be realised from the unexecuted portions of existing contracts stood at Rs 78.9 crore as on May 31, 2024.

Manglam Infra and Engineering has reportedly exhibited quite reasonable financial performance on its financials during the last three fiscals ended FY24; total revenue and net profit were growing with positive CAGR. On the top line, total revenue moved up from Rs 26.78 crore in FY22 to Rs 40.5 crore in FY24 at a CAGR of 22.98%. On the bottom line, net profit rose from Rs 3.32 crore in FY22 to Rs 6.76 crore in FY23 at a CAGR of 42.53%.

Total revenues went to Rs 40.24 crore with a net profit of Rs 6.76 crore for the period ended on March 2024.