Mayank Cattle Food IPO: Check GMP, subscription status on day 3, review, other key details

Mayank Cattle Food IPO has opened for subscription on Monday, January 29, and will close on Wednesday, January 31. Mayank Cattle Food IPO price band has been set at ₹108 apiece. Mayank Cattle Food IPO lot size consists of 1,200 shares. Investors can bid for a minimum of 1,200 shares and in multiples thereof.

 Mayank Cattle Food manufactures non-edible maize oil and cake (cattle feed). The company has been producing non-edible maize oil and caked maize, which is used as cattle feed. The business process involves buying the maize germ, followed by automated removal, packing, and sale of the maize cake and oil.

Spread across around 87,133 square feet, the company's manufacturing plant in Gujarat is outfitted with state-of-the-art equipment and technology.

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The company's promoters are Ajay and Bharatkumar Popatlal Vachhani.

From March 31, 2022 to March 31, 2023, Mayank Cattle Food Limited's profit after tax (PAT) increased by 64.45% while its revenue declined by 4.15%.

Tentatively, Mayank Cattle Food IPO basis of allotment of shares will be finalised on Thursday, February 1 and the company will initiate refunds on Friday, February 2, while the shares will be credited to the demat account of allottees on the same day. Mayank Cattle Food shares are to be listed on BSE SME on Monday, February 5.

As per the red herring prospectus (RHP), the company believes that none of the listed companies in India offer products or services across the various business segments in which they operate. Hence a strict comparison is not possible.

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Mayank Cattle Food IPO details 

Mayank Cattle Food IPO, which is worth ₹19.44 crore, consists of fresh issue of 18,00,000 shares. This is a completely fresh issue, and there is no offer-for-sale component.

The issue's objectives are to provide funding for general business objectives, working capital requirements, issue expenses, and capital expenditures for the purchase of new equipment and machinery.

“Our Company believes that listing will enhance our Company’s corporate image, brand name and create a public market for its Equity Shares in India. It will also make future financing easier and affordable in case of expansion or diversification of the business. Further, listing attracts interest of institutional investors as well as foreign institutional investors,” the company said in its RHP.

For the Mayank Cattle Food IPO, Cameo Corporate Services Limited is the registrar and Finshore Management Services Limited is the book running lead manager. Market maker Rikhav Securities is in charge of the Mayank Cattle Food IPO.

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Mayank Cattle Food IPO subscription status 

Mayank Cattle Food IPO subscription status is 6.23 times on day 3, so far. The issue received positive response from retail investors who's portion set was subscribed 9.32 times, and non-institutional buyers who's portion was subscribed 3.14 times, as per data available on chittorgarh.com.

The company has received bids for 1,06,45,200 shares against 17,10,000 shares on offer, at 15:11 IST, according to data on chittorgarh.com.

Mayank Cattle Food IPO subscription status was 78% on day 1, and on the second day the issue was subscribed 2.75 times. 

Mayank Cattle Food IPO GMP today

Mayank Cattle Food IPO GMP or grey market premium is +10. This indicates Mayank Cattle Food share price were trading at a premium of ₹10 in the grey market on Monday, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Mayank Cattle Food share price was indicated at ₹118 apiece, which is 9.26% higher than the IPO price of ₹108. 

'Grey market premium' indicates investors' readiness to pay more than the issue price.

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Mayank Cattle Food IPO Review

“The company is operating in a highly competitive and fragmented segment. It has posted inconsistency in top and bottom lines for the reported periods. Based on FY24 annualised earnings, the issue appears aggressively priced. There is no harm in skipping this pricey issue,” said Dilip Davda, the contributing editor at Chittorgarh.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.