Mayank Cattle Food IPO: Check GMP, second day subscription status, verification and other important details

Mayank Cattle Food's IPO opened for subscription on Monday, January 29 and closes on Wednesday, January 31. The price range for Mayank Cattle Food's IPO has been set at ₹108 each. The lot size of Mayank Cattle Food IPO consists of 1,200 shares. Investors can bid for at least 1,200 shares and multiples thereof.

Mayank Cattle Food produces inedible corn oil and cakes (cattle feed). The company produces inedible corn oil and dried corn used as livestock feed. The business process includes purchasing the corn germ, followed by automatic picking, packaging and selling of the corn cake and oil.

The company's manufacturing facility in Gujarat is spread over an area of ​​approximately 8,133 square meters and is equipped with state-of-the-art equipment and technology.

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The promoters of the company are Ajay and Bharatkumar Popatlal Vachhani.

From March 31, 2022 to March 31, 2023, Mayank Cattle Food Limited's Profit After Tax (PAT) increased by 64.45% while revenue declined by 4.15%.

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Tentatively, the share allotment basis for the IPO of Mayank Cattle Food will be completed on Thursday, February 1 and the company will issue refunds on Friday, February 2 while the shares will be deposited in the demat account of the allottees on the same day be credited. Shares of Mayank Cattle Food will list on the BSE SME on Monday, February 5.

According to the Red Herring Prospectus (RHP), the Company believes that none of the listed companies in India offer products or services in the various business segments in which they operate. Therefore, a strict comparison is not possible.

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Mayank Cattle Food IPO details

Mayank Cattle Food's IPO worth taking ₹19.44 crore comprising fresh issue of 18,00,000 equity shares. This is a completely new problem and there is no supply component.

The objective of the issue is to provide funds for general business objectives, working capital requirements, issue costs and capital expenditure for the purchase of new equipment and machinery.

“Our company believes that the listing will enhance the corporate image and brand name of our company and create a public market for its shares in India. In addition, future financing becomes easier and more affordable in the event of business expansion or diversification. Additionally, the listing attracts interest from institutional investors as well as foreign institutional investors,” the company said in its RHP.

For the IPO of Mayank Cattle Food, Cameo Corporate Services Limited is acting as registrar and Finshore Management Services Limited is acting as book-running lead manager. Market maker Rikhav Securities is responsible for the IPO of Mayank Cattle Food.

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Mayank Cattle Food IPO Subscription Status

The subscription status for Mayank Cattle Food IPO is 1.82x on the second day so far. The issue received positive response from retail investors whose share was subscribed 2.98 times and non-institutional buyers whose share was subscribed 67%, as per data available on chittorgarh.com.

According to chittorgarh.com, the company has received offers for 31,20,000 shares against 17,10,000 shares on offer at 3:53 pm IST.

Mayank Cattle Food's IPO subscription status stood at 78% on the first day.

Mayank Cattle Food IPO GMP today

Mayank Cattle Food IPO GMP or gray market premium is +10. This suggests that Mayank Cattle Food's share price was trading at a premium of ₹10 on the gray market on Monday, according to investorgain.com.

Taking into account the upper end of the IPO price range and the current premium in the gray market, the estimated listing price of Mayank Cattle Food stock has been provided ₹118 per piece, which is 9.26% higher than the IPO price of ₹108.

“Gray market premium” indicates investors’ willingness to pay more than the issue price.

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Valuation of Mayank Cattle Food IPO

“The company operates in a highly competitive and fragmented segment. Inconsistencies in sales and profit figures were identified in the reporting periods. Based on FY24 annualized returns, the issue appears to be aggressively priced. There is no harm in skipping this expensive issue,” said Dilip Davda, Editor, Chittorgarh.

Disclaimer: The views and recommendations expressed in this article are those of individual analysts. These do not reflect the views of Mint. We recommend investors consult certified experts before making an investment decision.

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