M.V.K. Agro Food Product IPO: Day 1 subscription status, GMP and other details
The ₹65.88 crore initial public offering (IPO) of small and medium-sized enterprise M.V.K. Agro Food Product opened for subscription today, Thursday, February 29, 2024. The issue, which will close on Monday, March 4, has a price of ₹120 per share.
M.V.K. Agro Food Product Subscription Status
The IPO has been subscribed 65 percent till now on the first day of bidding. It received bids for 33.76 lakh shares as against 52.12 lakh on offer. The retail investor category was subscribed 92 percent while the non-institutional investor (NII) portion was bid just 37 percent.
M.V.K. Agro Food Product GMP
M.V.K. Agro Food IPO GMP or grey market premium was ₹41, indicating that the company is estimated to list at ₹161, a 34.17 percent premium to its IPO price. The GMP for the firm has jumped from ₹30 in the previous session, February 28 and ₹19 on February 27.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
M.V.K. Agro Food Product IPO Details
The IPO is entirely a fresh issue of 54.9 lakh shares.
M.V.K. Agro Food has a minimum lot size of 1200 shares. The minimum amount of investment required by retail investors is ₹1.44 lakh . The minimum lot size investment for HNI is 2 lots (2,400 shares) amounting to ₹2.88 lakh.
The company proposes to utilise the net proceeds from the issue towards setting up a greenfield unit in Nanded, Maharashtra for (i) manufacturing Ethanol and (ii) generation and bottling of Bio-CNG and Fertiliser; and general corporate purposes.
The promoters of the company are Marotrao Vyankatrao Kawale, Sagarbai Marotrao Kawale, Ganeshrao Vyankatrao Kawale, Kishanrao Vyankatarao Kawale and Sandip Marotrao Kawale. Currently, they hold a 100 percent stake in the firm but post the issue, their stake will decrease to 64.56 percent.
Horizon Management Private Limited is the book-running lead manager of the M.V.K. Agro Food IPO, while Mas Services Limited is the registrar for the issue. The market maker for M.V.K. Agro Food IPO is Nikunj Stock Brokers.
The allotment for the M.V.K. Agro Food IPO is expected to be finalised on Tuesday, March 5, 2024. M.V.K. Agro Food IPO will list on NSE SME with the tentative listing date fixed as Thursday, March 7, 2024.
About M.V.K. Agro Food Product
Incorporated in February 2018, MVK Agro Food Product Limited is a manufacturer of integrated sugar and other related products. The company has a licensed crushing capacity of 2,500 TCD and sells its by-products, Molasses, Bagasse, and Pressmud.
The company sells its products through brokers who, in turn, sell to export houses such as PepsiCo Holdings India Private Limited, Parle Biscuits Private Limited and Britannia Industries Limited. In addition to selling its products to brokers, the company also supplies commodities to export-oriented traders like Sakuma Exports Limited, Indian Sugar Exim Corporation, Garden Court, and HRMM Agro Overseas Private Limited.
Should you apply?
“The company is primarily in sugar production and has few other by-products. It is adding ethanol plant to tap the rising demand for this by-product. The company marked inconsistency in its top and bottom lines for the reported periods. Based on its FY24 annualized super earnings, the issue appears aggressively priced. Well-informed/cash surplus investors may park funds for the medium to long term rewards,” said Dilip Davda, Contributig Editor, Chittorgarh.com.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Published: 29 Feb 2024, 04:49 PM IST
