IPO Details
Bidding Dates
29 Feb '24 - 04 Mar '24
Minimum Investment
₹144,000 / 1 Lot ( 1200 Shares )
Price Range
₹120
Maximum Investment
₹144,000 / 1 Lot ( 1200 Shares )
Retail Discount
Not Applicable
Issue Size
₹65.88 Cr
Investor category and sub category
Retail Individual Investors | Non-Institutional Investors | Qualified Institutional Buyers (QIB) |M.V.K. Agro Food Product Limited IPO Important Dates
Important dates with respect to IPO allotment and listing
Opening Date
Feb 29, 2024
Closing Date
Mar 4, 2024
Basis of Allotment
Mar 5, 2024
Initiation of Refunds
Mar 6, 2024
Credit of Shares to Demat
Mar 6, 2024
Listing Date
Mar 7, 2024
Cut-off time for UPI mandate confirmation
Mar 4, 2024
M.V.K. Agro Food IPO Subscription Details
| Date | NII | Retail | Total |
|---|---|---|---|
Day 1Feb 29, 2024 |
0.56x | 1.56x | 1.06x |
M.V.K. Agro Food IPO Subscription Status Live
| Investor Category | Subscription (Times) |
|---|---|
| Non-Institutional Buyers | 0.56 |
| Retail Investors | 1.56 |
| Total | 1.06 |
About M.V.K. Agro Food Product Limited
M.V.K. Agro Food Product Limited, an integrated sugar and other allied products manufacturing company, operates from Nanded District in Maharashtra. The company boasts a single-location sugar unit with a licensed crushing capacity of 2,500 TCD.
Beyond sugar, M.V.K. Agro Food Product Limited diversifies its revenue streams by commercialising and selling by-products and waste products, including Molasses, Bagasse, and Pressmud. Additionally, it engages in power generation for captive consumption, bifurcating its operations into two primary segments: Sugar and its by-products/waste products.
The inception of sugar manufacturing operations was marked in 2020. Following this, M.V.K. Agro Food Product Limited embarked on a strategic move towards backward integration, initiating commercial operations of the by-products and waste products of sugar and co-generation capabilities within the same year.
As of Fiscal 2023, the company has successfully completed three crushing seasons, specifically in 2020-21, 2021-22, and 2022-23, showcasing a commitment to growth and expansion in all its offerings' production/manufacturing capacities.
Industry Outlook
- India is the world's leading sugar producer, with a production of 37 million metric tons in 2022, supporting the livelihood of farmers and providing employment to approximately 500,000 workers.
- The sugar sector is estimated to produce 340 lakh tonnes in SS 2022-23, with a record diversion of 45 lakh tonnes to ethanol, supporting an 8-12% revenue growth for mills.
- As of February 2023, sugar production saw a 5.5% year-on-year increase, primarily from Maharashtra, Uttar Pradesh, and Karnataka, with a government-set export quota of 60 lakh tonnes.
- Ethanol prices from different routes have been increased by up to 6%, incentivising mills towards high-margin ethanol production, enhancing profitability and supporting the industry's sustainability.
M.V.K. Agro Food Product Limited IPO Details
M.V.K. Agro Food Product Limited IPO Date
The IPO of M.V.K. Agro Food Product Limited is open for subscription from February 29, 2024, to March 4, 2024.
M.V.K. Agro Food Product Limited IPO's Price Band
M.V.K. Agro Food Product Limited’s IPO is a fresh issue IPO of up to ₹65.88 crore. It is a fixed-price issue. The price range is set to ₹120 per share.
M.V.K. Agro Food Product Limited IPO’s Lot Size
The lot size for M.V.K. Agro Food Product Limited’s IPO is 1,200 shares with a minimum investment of ₹1,44,000.
M.V.K. Agro Food Product Limited IPO’s Objectives
The objectives of the Initial Public Offering (IPO) are outlined with the intention to fund the following key initiatives:
- Establishment of a Greenfield Unit in Nanded, Maharashtra: The primary allocation of funds is aimed at setting up a new unit dedicated to the manufacturing of Ethanol, alongside the generation and bottling of Bio-CNG and Fertilizer. The estimated amount allocated for this objective is ₹52.38 crores.
- General Corporate Purposes: A portion of the proceeds is also earmarked for general corporate purposes, which may include, but are not limited to, operational expenses, marketing, and working capital requirements. This is allocated an estimated amount of ₹5.87 crores.
Peer Details
The following is a listed peer company of M.V.K. Agro Food Product Limited in India:
- Ugar Sugar Works Ltd.
- Dwarikesh Sugar Industries Ltd
- Dhampur Sugar Mill Ltd
- Balrampur Chini Mills Ltd
How To Check the Allotment Status of M.V.K. Agro Food Product Limited’s IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app
- Go to the IPO Section and then to IPO Orders
- Select the individual IPO that you had applied for and check the allotment status.
- As such, Angel One will notify you of your IPO allotment status via push notification and email.
Contact Details of M.V.K. Agro Food Product Limited
Registered office: GUT No. 44 and 46, Kusumnagar, At Post Waghalwada, Umari, Nanded – 431 807, Maharashtra, India
Contact Person: Swapna Rajaram Bansode (Company Secretary and Compliance Officer)
Phone: +91 862 309 4480
E-mail: info@mvkagrofood.com
IPO Financials
| Particulars | For the period Ended on September 30, 2023 | Year ending on March 31, 2023 | Year ending on March 31, 2022 | Year ending on March 31, 2021 |
|---|---|---|---|---|
| Total Income | 6,044.36 | 9,393.63 | 13,263.56 | 2,583.10 |
| EBITDA Margin (%) | 21.93% | 17.68% | 9.06% | 20.66% |
| Profit After Tax (PAT) | 430.07 | 377.45 | 320.78 | 139.43 |
| PAT Margin (%) | 7.15% | 4.05% | 2.45% | 6.11% |
| Cash & Cash Equivalents | 16.67 | 63.05 | 14.58 | 123.2 |
| Return on Equity (%) | 27.70% | 32.85% | 39.96% | 43.85% |
| Return on Capital Employed (RoCE) (%) | 14.09% | 13.44% | 14.49% | 5.98% |
| Earning Per Share (EPS) in absolute ₹ | 8.60 | 7.55 | 6.40 | 3.35 |
| Net Debt/ EBITDA(x) | 4.73 | 5.47 | 4.98 | 13.82 |
Know before investing
Strengths
4-
Operates a comprehensive manufacturing unit in Maharashtra with a 2,500 TCD sugar unit and capabilities for by-product management and power generation.
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Utilises sugar production by-products for generating electricity and has expanded into dairy with the acquisition of Sai Krupa Dairy & Food Products.
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Maintains positive relations with a large base of sugarcane farmers across 177 villages, ensuring a steady supply of sugarcane and promoting sustainable farming practices.
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Hosts a 3 MW captive power plant utilising Bagasse, ensuring energy self-sufficiency and reducing operational dependencies.
Risks
4-
M.V.K. Agro Food Product Limited faces operational risks in commissioning the new manufacturing unit on schedule and within budget, potentially impacting business performance.
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The company has not yet secured the necessary approvals for the proposed unit, which could adversely affect operations and financial health.
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With limited experience in manufacturing Ethanol, Bio-CNG, and Fertiliser, evaluating the company's future performance in these areas is challenging.
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There's no guarantee that the IPO objectives will be met within the anticipated timeframe nor that the investment will enhance shareholder value.
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M.V.K. Agro Food Product Limited IPO FAQs
M.V.K. Agro Food Product Limited IPO is a fresh issue of up to ₹65.88 Crore. It is a fixed-price issue.
The M.V.K. Agro Food Product Limited’s shares will be allotted on March 6, 2024.
The IPO subscription window for M.V.K. Agro Food Product Limited will open on February 29, 2024.
Retail investors can apply for at least one lot, which is a size of 1,200 shares, with a sum of ₹1,44,000.
M.V.K. Agro Food Product Limited will be listed on NSE Emerge. The stock will be listed on March 7, 2024.
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app
- Go to the IPO Section and then to IPO Orders
- Select the individual IPO that you had applied for and check the allotment status.
- As such, Angel One will notify you of your IPO allotment status via push notification and email.
Listing gains cannot be ascertained before the listing of the IPO on the stock exchange.
Initially, the bank will only block the amount in your account. The money will not be debited until the stocks are allotted to you.
You must complete the payment process by logging in to your UPI handle and approving the payment mandate.
You can submit only one application using your PAN card.
