NSE SME M.V.K. Agro Food Product tumbles on debut
07-Mar-2024
The scrip was listed at Rs 79, a discount of 34% compared with the initial public offer (IPO) price. The stock is currently frozen at its upper limit of 5% over its listing price.
The counter hit a high of Rs 82.95 and a low of Rs 75.05. About 3.13 lakh shares of the company changed hands at the counter.
M.V.K. Agro Food Product's IPO received was subscribed 8.13 times. The issue opened for bidding on 29 February 2024 and it closed on 4 March 2024. The price of the IPO was fixed at Rs 120 per share.
The IPO comprised fresh issue of 54,90,000 equity shares. The promoter and promoter shareholding diluted to 64.56% from 100% pre-IPO.
The company intends to utilize the net proceeds to setting up a greenfield unit in Nanded, Maharashtra for manufacturing Ethanol & generation and bottling of Bio-CNG and Fertilizer and general corporate purpose.
M.V.K. Agro Food Product is integrated sugar and other allied products manufacturing company operating from Nanded, Maharashtra. The company operates a single location sugar unit having licensed crushing capacity of 2,500 TCD. In addition to sugar the company also commercialise and sell its by-products and waste products, namely, Molasses, Bagasse and Pressmud. The firm is also engaged in the generation of Power for captive consumption. As of 30 September 2023, the company has total 161 employees.
The company recorded revenue from operations of Rs 60.12 crore and net profit of Rs 4.30 crore for the period as on 30 September 2023.