Gujarat-based B2B peanut butter producer Mother Nutri Foods' initial public offering (IPO) was undersubscribed at 92 percent on day 1 — November 26, but the portion set aside non-institutional investors (NII) was fully booked.
The company approached capital markets to raise Rs 39.6 crore via IPO of 33.84 lakh shares which is a mix of fresh issue of 27.07 lakh shares and an offer-for-sale of 6.76 lakh shares via promoter Umeshbhai Kantilal Sheth.
The price band for the offer, which will remain open till November 28, is Rs 111-117 per share.
Investors have bid 22.53 lakh shares on Wednesday against the offer size of 24.44 lakh shares via 197 applications, with NII portion being subscribed 1.73 times their allotted quota. The parts reserved for qualified institutional buyers and retail investors were booked 95 percent and 38 percent, respectively.
Ahead of the IPO opening for public, Mother Nutri Foods has mopped up Rs 10.99 crore by issuing 9.39 lakh shares to three anchor investors - Vikasa India, Amicorp Capital, and Radiant Global Fund on November 25.
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The company will spend Rs 23.19 crore of fresh issue proceeds for setting up a new manufacturing facility at Bhavnagar, Gujarat, and the remaining funds for general corporate purposes.
"This proposed project will enhance production capacity to 15,200 MTPA," Mother Nutri Foods said.
The peanut butter maker under its existing manufacturing facility at same place has an installed capacity of 8,000 MTPA.
Marwadi Chandarana Intermediaries Brokers is acting as the merchant banker for the Mother Nutri Foods IPO.
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