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Business News/ Markets / Ipo/  M.V.K. Agro Food IPO to open on February 29: Check key dates, price band, other details
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M.V.K. Agro Food IPO to open on February 29: Check key dates, price band, other details

M.V.K. Agro Food IPO opens for subscription on February 29, 2024 and closes on March 4, 2024.

M.V.K Agro Food IPO will open for bidding on February 29, 2024. (Image Credit: https://mvkagrofood.com/) (https://mvkagrofood.com/)Premium
M.V.K Agro Food IPO will open for bidding on February 29, 2024. (Image Credit: https://mvkagrofood.com/) (https://mvkagrofood.com/)

M.V.K. Agro Food: The initial public offering (IPO) of small and medium-sized enterprises M.V.K. Agro Food Product Limited will be opening for subscription on Thursday, February 29, 2024. It comprises is a fixed price issue of 65.88 crore. The issue is entirely a fresh issue of 54.9 lakh shares. 

The SME IPO will close on Monday, March 4, 2024. The allotment for the M.V.K. Agro Food IPO is expected to be finalized on Tuesday, March 5, 2024 and the tentative listing date for the shares is fixed as Thursday, March 7, 2024.

M.V.K. Agro Food IPO Details:

M.V.K. Agro Food Product Limited, specializing in sugar production, by-products utilization, and power generation based in Nanded District, Maharashtra is aiming to raise 65.88 crore through this IPO, with shares set to be listed on the NSE Emerge platform.

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The issue size is Up to 54,90,000 equity shares at face value of 10 each. M.V.K. Agro Food IPO price is 120 per share. The minimum lot size for an application is 1,200 shares. The minimum amount of investment required by retail investors is 144,000.

The net proceeds from the IPO will be utilized for setting up a greenfield unit in Nanded, Maharashtra. Funds will also be used for manufacturing Ethanol and generation and bottling of bio-CNG and fertilizer, as well as for general corporate expenses.

“I'm pleased to announce our decision to go public with this IPO. It marks a significant step forward in our company's growth, reflecting our commitment to innovation and expansion. Since our establishment in 2018, M.V.K Agro has been dedicated to revolutionizing the agricultural industry, starting with our focus on sugar production and expanding into the utilization of by-products and power generation,'' said Marotrao Vyankatrao Kawale, Managing Director of M.V.K Agro Food Product Limited.

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 company has allocated up to 26,07,600 equity shares of the net IPO offer to retail investors, up to 2,74,800 shares for market maker and up to 26,07,600 shares for non-institutional investors.

 “M.V.K Agro's impressive track record in sugar production, and its strategic expansion into by-products utilization and power generation, underscores their commitment to sustainable growth and environmental responsibility,'' said Narendra Bajaj, Director of Horizon Management Private Limited.

Also Read: Exicom Tele-Systems IPO: Planning to invest? 10 key risks you should know before subscribing to the issue

M.V.K. Agro Food Company Details:

EM.V.K. Agro Food Product Limited initially focused on sugar production with a crushing capacity of 2,500 TCD. In 2020, it expanded into by-products and waste utilization, along with co-generation capabilities. The company manufactures and sells sugar, along with by-products like Molasses, Bagasse, and Pressmud, and generates power for internal consumption.

In pursuit of diversification, M.V.K. Agro plans to establish a greenfield unit for Ethanol, Bio-CNG, and Fertilizer production. They employ a diversified marketing strategy and prioritize quality control, evident through their in-house laboratory and dedicated Quality Division. This ensures rigorous testing of raw materials and finished products, maintaining high-quality standards throughout the manufacturing process.

M.V.K. Agro Food Product Limited acquired 100 per cent shareholding of Sai Krupa Dairy & Food Products Private Limited. This acquisition resulted in Sai Krupa Dairy becoming a wholly-owned subsidiary. The company processes and sells dairy products under the brand “K Guru Ji." In FY23, the company achieved a revenue of 9,327.65 lakh, EBITDA of 1,661.13 lakh, and a net profit of 377.45 lakh

M.V.K. Agro Food IPO GMP: 

M.V.K. Agro Food IPO GMP or grey market premium is 23 per share. This indicates M.V.K. Agro Food share price were trading at a premium of 23 according to investorgain.com. 'Grey market premium' indicates investors' readiness to pay more than the issue price. 

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of M.V.K. Agro Food is 143 apiece, which is 19.17 per cent higher than the IPO price of 120.

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ABOUT THE AUTHOR
Nikita Prasad
Nikita covers business news and has been producing news on digital platforms since 2018. She writes on economy, policy, markets, commodities, industry. Her core areas of interests include infrastructure, energy, oil and gas, railways, and transport/mobility. She has worked for business news channels like Moneycontrol, NDTV Profit, and Financial Express in the past. If you have story ideas/pitches/reports or quotes/views to share, reach her at nikita.prasad@htdigital.in.
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Published: 28 Feb 2024, 05:53 PM IST
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