M V K Agro Food IPO will open for subscription from 29 February 2024. The company aims for an issue size of ₹65.88 Cr through this IPO.
Company Overview
| Full name | M.V.K. Agro Food Limited |
| Sector | Agriculture |
| Industry | Sugar |
| Company Website | https://mvkagrofood.com/ |
About Company
MVK Agro Food is a prominent player in the integrated sugar and allied products manufacturing industry, situated in Nanded District, Maharashtra. Operating a single-location sugar unit with a licensed crushing capacity of 2,500 TCD (Tones Cane per day), the company boasts significant production capabilities. Alongside sugar, MVK Agro Food commercializes valuable by-products and waste products like Molasses (120 Tons per day), Bagasse (750 Tons per day), and Pressmud (90 Tons per day). The company has 161 employees and does not use any contract labor. The company also purchases all its required sugarcane directly from farmers.
In Fiscal 2023, the company achieved noteworthy revenues, with sugar sales through domestic brokers amounting to INR 27.5 crore and through export-oriented commodity traders at INR 26.6 crore. By-products such as Bagasse, Cane Seed & others, Molasses, and Pressmud contributed substantially to the revenue stream. MVK Agro Food plans to invest INR 34.9 crore in setting up a unit for ethanol and bio-CNG production, and INR 17.5 crore in fertilizer production.
The Objectives of the Issue
- Setting up a greenfield unit in Nanded, Maharashtra for (i) manufacturing Ethanol and (ii) generation and bottling of Bio-CNG and Fertilizer.
- General corporate purposes.
M V K Agro Food IPO Timetable
| IPO Opening date | 29 February 2024 |
| IPO Closing | 04 March 2024 |
| Basis of Allotment | 05 March 2024 |
| Initiation Refund | 06 March 2024 |
| Credit to Demat Account | 06 March 2024 |
| Listing Date | 07 March 2024 |
M V K Agro Food IPO details
| Issue type | Fixed Price Issue IPO |
| IPO issue size | ₹65.88 Cr – 5,490,000 shares |
| Fresh Issue | ₹65.88 Cr – 5,490,000 shares |
| Offer for sale | Nil |
| Face value | ₹10 per share |
| Offer Price | ₹120 per share |
| Lot size | 1200 Shares |
| Market Maker portion | 274,800 shares |
| Shareholding pre-issue | 10,000,000 |
| Shareholding post-issue | 15,490,000 |
| Listing Exchange | NSE SME |
M V K Agro Food IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 1200 | ₹144,000 |
| Retail (Max) | 1 | 1200 | ₹144,000 |
| HNI (Min) | 2 | 2,400 | ₹288,000 |
M V K Agro Food IPO Reservation Details
| Retail Shares Offered | 50% |
| Other Shares Offered | 50% |
M.V.K. Agro Food’s Financial Performance
| FY 2021 | FY 2022 | FY 2023 | H1 FY 2024 | |
| Revenue | 22.83 | 130.67 | 93.28 | 60.13 |
| Expenses | 23.98 | 128.46 | 89.02 | 54.77 |
| Net income | 1.40 | 3.20 | 3.77 | 4.30 |
M.V.K. Agro Food’s Valuations & Margins
| FY 2021 | FY 2022 | FY 2023 | |
| EPS | 1.67 | 3.20 | 3.77 |
| PE ratio | – | – | 15.90 |
| RONW (%) | 35.48 | 39.96 | 32.85 |
| NAV | – | – | 35.35 |
| ROCE (%) | 5.98 | 14.49 | 13.44 |
| EBITDA (%) | 20.66 | 9.06 | 17.68 |
| Debt/Equity | 11.71 | 6.25 | 6.84 |
Company Promoters
- Marotrao Vyankatrao Kawale
- Sagarbai Marotrao Kawale
- Ganeshrao Vyankatrao Kawale
- Kishanrao Vyankatarao Kawale
- Sandip Marotrao Kawale
Promoter Holding
| Pre Issue Share Holding | 100% |
| Post Issue Share Holding | 64.56% |
M.V.K. Agro Food IPO Lead Manager(s)
HORIZON MANAGEMENT PRIVATE LIMITED
19 R N Mukherjee Road, Main Building, 2nd Floor,
Kolkata- 700 001, West Bengal, India
Phone: +91 33 4600 0607
Email: smeipo@horizon.net.co
Website: www.horizonmanagement.in
M.V.K. Agro Food Registrar
MAS SERVICES LIMITED
T-34, 2nd Floor, Okhla Industrial Area,
Phase-II New Delhi- 110 020
Phone: +91 112 638 7281/83
Email: ipo@masserv.com
Website: www.masserv.com
M.V.K. Agro Food Contact Details
MVK AGRO FOOD PRODUCT LIMITED
GUT No. 44 and 46, Kusumnagar,
At Post Waghalwada, Umari,
Nanded – 431 807, Maharashtra
Phone: +91 862 309 4480
E-mail: info@mvkagrofood.com
Website: www.mvkagrofood.com
M.V.K. Agro Food IPO Allotment Status
MVK Agro Food IPO allotment status will be available on Mas Services’ website. Click on Mas Services IPO weblink to get allotment status.
Final thoughts
M.V.K. Agro Food IPO is going to hit Dalal Street soon. applying for an IPO is purely a personal choice. study well about the company and subscribe if you are feeling good about the company. I hope this post will give you enough details to make a fundamental study of the company. learn well and make wise decisions.
Happy Investing
