MVK Agro Food Product makes dismal market debut on NSE SME; lists at 34% discount

The fresh proceeds from the offer shall be utilized for setting up a greenfield unit in Nanded, Maharashtra.

Shares of MVK. Agro Food Product Limited made a weak debut on March 7 trading at Rs 79, a discount of 34 percent from the issue price of Rs 120 on the NSE SME.

Incorporated in February 2018, the company manufactures integrated sugar and other related products. The company sells its products through brokers who, in turn, sell to export houses such as PepsiCo Holdings India Private Limited, Parle Biscuits Private Limited, and Britannia Industries Limited.

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MVK planned to raise Rs 65.88 crore through the offer. The issue is entirely a fresh issue of 54.9 lakh shares and the price band for the issue was set at Rs 120.

Also read: Mukka Proteins lists with 43% premium: Should you buy, sell, or hold the stock?

The fresh proceeds from the offer shall be utilised for setting up a greenfield unit in Nanded, Maharashtra. Funds will also be used for manufacturing Ethanol along with the generation and bottling of bio-CNG and fertiliser. The remaining proceeds are earmarked for general corporate purposes.

Horizon Management Private Limited is the book-running lead manager of the MVK Agro Food IPO, while Mas Services Limited is the registrar for the issue. The market maker for MVK Agro Food IPO is Nikunj Stock Brokers.

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