Rights issue money to be used for capex: McNally Bharat Engineering

Srinivash Singh, MD of McNally Bharat Engineering said that the rights issue money will be used for capex. The company is planning for capex of Rs 60 crore for projects and Rs 60 crore for product operations. He said that the company doesn’t require to raise further capital as of now.

Current order backlog of the company is at Rs 3300 crore. He expect turover of Rs 1800-2000 crore for FY10.

McNally Bharat Engineering is a part of BM Khaitan Group company. The company is raising funds via 1:10 rights issue at Rs 140. The company is raising about Rs 44 crore via rights issue. Current, company’s equity is at 3.11 crore shares. Promoter holding in the company is at 32.3%. The funds will be used by the company mainly for capex.

McNally Bharat is planning for capex of Rs 50-60 crore for factory/product operations and Rs 60 crore for project operations. The company is engaged in providing Turnkey solutions. It has technical collaborations with leading global firms. It has two arms-EWB Kornyezetvedelmi, Eriez Magnetics.

PE Fund EIG (Mauritius) picked 5% in Mcnally Sayaji Engg at Rs 186 per share. Valuation of Mcnally Sayaji is at Rs 240 crore. EIG is in further talks for bigger chunk of company. Promoter holding in McNally Sayaji is at 88%. McNally Sayaji is lined up to invest Rs 200 crore in next 4 years.

McNally Bharat Engineering has order book of Rs 3300 crore, of which Rs 3000 crore is from project operations and Rs 300 crore is from products business. The company is expecting orders worth Rs 2000 crore by March 2010. The company’s major focus is on public sector companies. Its turnover, along with that of its two subsidiaries, for the current fiscal would be Rs 2,000 crore vs Rs 996 crore in 2008-09. McNally Sayaji, a subsidiary alone was expected to rake in a turnover of Rs 300 crore during the year, from Rs 200 crore last year.

McNally Bharat Q1FY10 net sales stood at Rs 269 crore vs Rs 131.80 crore, OPM stood at 8.9% vs 7.4% and PAT stood at Rs 8.07 crore vs Rs 4.07 crore.

No related posts.