M.V.K. Agro Food Product IPO: Day 1 subscription status, GMP and other details
₹65.88 crore initial public offering (IPO) of small and medium-sized enterprise M.V.K. Agro Food Product opened for subscription today, Thursday, February 29, 2024. The issue, which will close on Monday, March 4, has a price of ₹120 per share.
The IPO has been subscribed 65 percent till now on the first day of bidding. It received bids for 33.76 lakh shares as against 52.12 lakh on offer. The retail investor category was subscribed 92 percent while the non-institutional investor (NII) portion was bid just 37 percent.
M.V.K. Agro Food IPO GMP or grey market premium was ₹41, indicating that the company is estimated to list at ₹161, a 34.17 percent premium to its IPO price. The GMP for the firm has jumped from ₹30 in the previous session, February 28 and ₹19 on February 27.
'Grey market premium' indicates investors' readiness to pay more than the issue price. The IPO is entirely a fresh issue of 54.9 lakh shares. M.V.K.
Agro Food has a minimum lot size of 1200 shares. The minimum amount of investment required by retail investors is ₹1.44 lakh . The minimum lot size investment for HNI is 2 lots (2,400 shares) amounting to ₹2.88 lakh.
The company proposes to utilise the net proceeds from the issue towards setting up a greenfield unit in Nanded, Maharashtra for (i) manufacturing Ethanol and (ii) generation and bottling of Bio-CNG and Fertiliser; and general corporate purposes. The promoters of the company are Marotrao Vyankatrao Kawale, Sagarbai Marotrao Kawale, Ganeshrao Vyankatrao Kawale, Kishanrao Vyankatarao Kawale and Sandip Marotrao Kawale. Currently, they hold a 100 percent stake in the firm but post the issue, their stake will decrease to 64.56 percent.
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