Mayank Cattle Food stock lists at 7% premium over IPO price on BSE SME

Mayank Cattle Food IPO: Ahead of the listing, the shares were trading at an 8 percent premium in the grey market

Mayank Cattle Food listed at a 7.4 percent premium over the IPO price on February 5. The stock opened at Rs 116 against the issue price of Rs 156 on the BSE SME platform.

In listing was along expected lines. Mayank Cattle Food was trading at an 8 percent premium in the grey market, an unofficial ecosystem where shares start trading before the allotment in an IPO and continue till the listing day. Most investors track the grey market premium (GMP) to get an idea of the listing price.

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The Rs 19.44-crore offer was subscribed 8.8 times, with the retail portion subscribed 11 times. Entirely a fresh issue of 18 lakh shares, the offer opened on January 29 and closed January 31. The price for the issue was fixed at Rs 108 a share.

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The company plans to use towards the purchase of additional plant and machinery and to meet working capital requirements.

Mayank Cattle Food manufactures cattle food, animal food, cattle food cake and edible oil. The company operates a manufacturing facility in Rajkot, Gujarat and supplies products to Delhi and Maharashtra.