Money Tree

Salient Features :

Issue Opens on : February 15,2007
Issue Closes on : February 23,2007
Issue Size : 1,01,66,700 Equity Shares
Issue Type : Book Building
Face Value : Rs.10/-
Price Range : Rs.65/- to Rs.75/-
Tick Size : Re.1
Market Lot : 90
Minimum Order Qty : 90
Listing Stock Exchange : NSE, BSE

Main Objects of the Issue :

To prepay/repay the Debt.
To part finance long term working capital necessities of the company.
To meet the issue expenses and general commercial purposes.
To set up a new PET Preform Line at its existing plant at Neemrana, Rajasthan.

Key Strengths :

It has been a consistent profit making company.
Debtors to sales ratio has been down from 45% to 23% in the last 5 years (2002 to 2006).
AMD will be using a sum of 120 mn to reimburse its high interest cost debt. In this way the company will be able to diminish its interest cost approx.by Rs.12.9 mn.
The company has been generating a positive cash stream for the last 3 years.
It is an approved supplier by Pepsico and the Coca Cola Company for Crown Caps.

Weeknesses :

Being in a business, which has a little entry barrier, the company is posed to high competition.
It largely relies on a single customer (M/s Hindustan Coca Cola Beverages Pvt.Ltd.- HCCBL) which constitute nearly 80 percent of its revenue.
The main consumers of AMD products are soft drink manufacturers which are seasonal in nature.