MOIL IPO to hit market on 26 November 2010

Manganese Ore India Ltd (MOIL) Government PSU IPO

Manganese Ore India Ltd (MOIL),a PSU from the government stable is entering the capital with its Initial Public Offering on November 26, 2010. This is the initial offer by the Company to investors to participate in the share sale by government. The company has been given the status of Mini Ratna The PSU would dilute 20 percent of government’s holding With this issue the retail investors cap on maximum amount has been hiked to Rs 2 lakhs from Rs 1 lakh with the recent gazette Notifiation.

The company's manganese iron ore reserves are estimated at t 69 million tonne. Earlier CMD of the company KJ Singh said the” company had reserves to the tune of Rs 1,700 crore and was not looking at any raising any cash. He also added that the company operated at 60% plus margins and would maintain the same”.
MOIL operates 10 mines in India – while six mines are located in Maharashtra four are in Madhya Pradesh. The total production of manganese ore constitutes about 50% of requirement of the country. MOIL is the largest iron ore company in India and fifth largest in world.
The company has also diversified into renewable energy source and is the first PSU in India to set up wind farm of 20 MW capacity in the Nagda / Ratedi Hills in Madhya Pradesh.
The company has been making consistent profits since last 15 years and will use its cash reserve for capacity expansion to 1.5 mta from 1.1 mta. For the financial year ended 2010, MOIL t has reported net sales of Rs 963 crore as against Rs 1282 crore in FY09 and net profit at Rs 466 crore versus Rs 664 crore.

Manganese Ore India Ltd, MOIL, Initial Public Offering. IPO, Opens on November 26, 2010 Mini Ratna diversified to renewable energy Madhya Pradesh, Maharashtra, Manganese ore reserves