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

DateNIIRetailTotal

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 

  1. 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.
  2. 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.
  3. 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.
  4. 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:

  1. 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.
  2. 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:

  1. Ugar Sugar Works Ltd.
  2. Dwarikesh Sugar Industries Ltd
  3. Dhampur Sugar Mill Ltd
  4. 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

  1. Operates a comprehensive manufacturing unit in Maharashtra with a 2,500 TCD sugar unit and capabilities for by-product management and power generation.

  2. Utilises sugar production by-products for generating electricity and has expanded into dairy with the acquisition of Sai Krupa Dairy & Food Products.

  3. Maintains positive relations with a large base of sugarcane farmers across 177 villages, ensuring a steady supply of sugarcane and promoting sustainable farming practices.

  4. Hosts a 3 MW captive power plant utilising Bagasse, ensuring energy self-sufficiency and reducing operational dependencies.

Risks

4

  1. 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.

  2. The company has not yet secured the necessary approvals for the proposed unit, which could adversely affect operations and financial health.

  3. With limited experience in manufacturing Ethanol, Bio-CNG, and Fertiliser, evaluating the company's future performance in these areas is challenging.

  4. There's no guarantee that the IPO objectives will be met within the anticipated timeframe nor that the investment will enhance shareholder value.

  • How to Apply in IPO
  • How to Check IPO Allotment Status
Play Button

Login to Angel One App / Website & click on IPO

Select desired IPO & tap on "Apply"

Enter UPI ID, set quantity/price & submit

Accept mandate on the UPI app to complete the process

Play Button

Login to Angel One App / Website

Choose IPO section on Home Page

Click IPO Orders

Chose the IPO application you want to view the status for

M.V.K. Agro Food Product Limited IPO FAQs

What is M.V.K. Agro Food Product Limited's IPO?

M.V.K. Agro Food Product Limited IPO is a fresh issue of up to ₹65.88 Crore. It is a fixed-price issue.

When will M.V.K. Agro Food Product Limited's IPO be allotted?

The M.V.K. Agro Food Product Limited’s shares will be allotted on March 6, 2024.

When will M.V.K. Agro Food Product Limited's IPO open for subscription?

The IPO subscription window for M.V.K. Agro Food Product Limited will open on February 29, 2024.

What minimum lot size can retail investors subscribe to?

Retail investors can apply for at least one lot, which is a size of 1,200 shares, with a sum of ₹1,44,000.

When will M.V.K. Agro Food Product Limited list on exchanges?

M.V.K. Agro Food Product Limited will be listed on NSE Emerge. The stock will be listed on March 7, 2024.

How do I check the allotment status of M.V.K. Agro Food Product Limited?

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.

What would be the listing gains on M.V.K. Agro Food Product Limited's IPO?

Listing gains cannot be ascertained before the listing of the IPO on the stock exchange.

I have finished the application process for M.V.K. Agro Food Product Limited, but the funds still need to be debited. What is the reason?

Initially, the bank will only block the amount in your account. The money will not be debited until the stocks are allotted to you. 

How do I approve the UPI mandate request for M.V.K. Agro Food Product Limited's IPO?

You must complete the payment process by logging in to your UPI handle and approving the payment mandate.

Can I submit more than one application for the public issue of M.V.K. Agro Food Product Limited using one PAN?

You can submit only one application using your PAN card.