MEP Infrastructure Developers Ltd, a Mumbai-based toll management company, has obtained capital market regulator Securities Exchange Board of India's approval to raise up to Rs 360 crore ($56.8 million) through an initial public offer.
The company, promoted by the Mhaiskar family, had filed draft red-herring prospectus (DRHP) with the market regulator earlier in October this year for its IPO. The firm plans to use around Rs 291.2 crore towards repayment/pre-payment, of certain debt by one of its subsidiaries, MIPL.
The issue is being managed by IDFC Securities, Inga Capital and IDBI Capital.
The company follows an asset-light business model by focusing on pure toll collection as well as OMT projects on operational roads constructed by third parties. It generates revenue through collection of toll from commuters, under projects acquired by forecasting the traffic volume based on in-house surveys.
The firm has completed 68 projects, with an aggregate of 122 toll plazas and 783 lanes across 12 states in India as of now.
MEP Infra currently operates 23 toll collection projects with an aggregate of 40 toll plazas, five OMT projects covering 2,530.04 lane kms with an aggregate of 15 toll plazas and one BOT project covering 42.02 lane kms with five toll plazas. These ongoing projects are located across nine states in India.
(Edited by Joby Puthuparampil Johnson)