MVK Agro Food Product lists at ₹79, down 34% on NSE SME

MVK Agro Food Product Debuts on NSE SME for ₹79, with a 34% discount

MVK Agro Food Product's shares were launched on the NSE SME market on Thursday at a 34% discount. The shares launched at Rs 79, versus an issue price of Rs 120. Before the listing, the company's shares traded at a Rs 5 premium in the unlisted market.
The IPO, which was a fully new equity offering of Rs 54.9 lakh shares, had a positive reaction from investors, with an overall IPO subscription of 8 times at the closing. The net proceeds from the public offering will be utilized to establish a greenfield unit in Nanded, as well as for general company objectives.

MVK Agro is a Nanded, Maharashtra-based integrated sugar and other allied goods production firm. It runs a single sugar unit with a permitted crushing capacity of 2,500 TCD. In addition to sugar, the corporation commercializes and sells its byproducts and waste products, which include molasses, bagasse, and press mud.

In addition, the corporation generates power for its use. Its operations can thus be divided into two segments: sugar and its by-products. In the year 2020, the corporation commenced sugar production operations, followed by backward integration and commercial operations of sugar byproducts and waste products, as well as cogeneration capabilities.

According to the Indian Sugar Mills Association (ISMA), sugar output in India is expected to be about 340 lakh tonnes in 2022-23, down from a high of 358 lakh tonnes in 2021-22, with the largest ever diversion towards ethanol predicted at 45 lakh tonnes. The firm made Rs 60.12 crore in sales and Rs 4.3 crore in net profit for the fiscal year ending September 2023. Horizon Management functioned as the issue's lead manager, while Mas Services served as registrar.