Mother Nutri Foods IPO subscribed over 14 times, K K Silk Mills offer booked more than 5x on final day

Mother Nutri Foods IPO News

Gujarat-based peanut butter manufacturer Mother Nutri Foods' initial share sale saw more than 14 times subscription, while the public issue of K K Silk Mills, the fabrics and garments maker, was subscribed over 5 times on November 28, the final day of bidding.

After good amount of subscription, both companies will finalise their IPO share allotment by December 1, and make their debut on the BSE SME on December 3.

Investors have bid 3.52 crore equity shares, which was 14.43 times the 24.44 lakh shares offered in the Mother Nutri Foods IPO, via 6,979 applications.

Non-institutional investors took the lead, buying 23.03 times their allotted quota, while the portions set aside for retail investors and qualified institutional buyers were subscribed 11.31 times, and 10.1 times, respectively.

The peanut butter maker approached capital markets to raise Rs 39.59 crore via initial public offering (IPO) of 33.84 lakh shares at the upper end of price band of Rs 111-117 per share. The IPO was comprised of fresh issue of 27.07 lakh shares, and an offer-for-sale of 6.76 lakh shares by promoter.

The company will utilise 23.19 crore of fresh issue proceeds for setting up a new manufacturing facility at Mahuva, Gujarat, after which the peanut butter manufacturing capacity will increase to 15,200 MTPA from current 8,000 MTPA by September 2026.

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The remaining fresh issue funds will be used for general corporate purposes, while the offer-for-sale money will be received by promoter Umeshbhai Kantilal Sheth.

K K Silk Mills

Meanwhile, the public issue of garments manufacturer was subscribed 5.43 times with investors buying 4.06 crore equity shares against the offer size of 75 lakh shares via 6,145 applications.

Retail investors were at the forefront to boost the IPO subscription, buying 9.72 times their reserved portion, while qualified institutional buyers and non-institutional investors bought 5.71 times and 1.54 times their allotted quota, respectively.

Mumbai-based K K Silk Mills is raising Rs 28.5 crore via initial share sale of 75 lakh shares, consisting entirely fresh issue component. The price band for the offer was Rs 36-38 per share.

The company with manufacturing unit in Umbergaon, Gujarat will utilise Rs 3.1 crore of IPO proceeds for replacement of plant & machineries including installation, mechanical and electrical work, and Rs 17.86 crore for repayment certain borrowings. The remainder offer funds will be used for general corporate purposes.

Marwadi Chandarana Intermediaries Brokers acted as the merchant banker for the Mother Nutri Foods IPO, while the K K Silk Mills public issue was managed by the Axial Capital.