MVK Agro Food IPO - Review & Fundamental Analysis

MVK Agro Food IPO

MVK Agro Food IPO consists of a fresh issue of 54,90,000 shares worth INR 65.88 crores. The company seeks funds to initiate ethanol, bio-CNG, and fertilizer plants in Nanded, Maharashtra, for sustainable production and general corporate purposes.

M.V.K. Agro Food Product Ltd IPO – Important Details 

M.V.K Agro Food IPO DateFebruary 29, 2024 to March 4, 2024
M.V.K Agro Food IPO Listing DateMarch 7, 2024
M.V.K Agro Food IPO PriceINR 120 per share
M.V.K Agro Food IPO Lot Size1200 Shares
M.V.K Agro Food IPO Total Issue SizeINR 65.88 crores
M.V.K Agro Food IPO Basis of AllotmentMarch 5, 2024
M.V.K Agro Food IPO Initiation of RefundsMarch 6, 2024
M.V.K Agro Food IPO Credit of Shares to DematMarch 6, 2024
M.V.K Agro Food IPO Issue TypeFixed Price Issue
M.V.K Agro Food IPO Listing AtNSE SME

MVK Agro Food Product Limited IPO – Company Profile

M.V.K Agro Food, situated in Nanded, Maharashtra, runs a 2,500 TCD sugar unit, yielding sugar, Molasses, Bagasse, and Pressmud. Additionally, it generates power for captive consumption, delineating two business segments. 

They plan to diversify by manufacturing Ethanol, Bio-CNG, Molasses Bagasse, and Pressmud fertilizers. It aims for industrial usage and exports, utilizing proceeds for unit setup and portfolio expansion. 

They uphold stringent QA/QC standards for sugar and power production. Its in-house Quality Division monitors raw materials and finished goods, ensuring compliance and continuous improvement to enhance procurement efficiency and reduce costs. 

M.V.K. Agro Food Product Ltd IPO  – Fundamental Analysis 

MVK Agro Food Product Limited’s IPO offers a glimpse into its financial journey, showcasing fluctuating revenues, improved profit margins, and a strategic approach to capital management, positioning it as a potentially intriguing option for investors. 

Revenue Growth: 

The company witnessed a substantial rise in revenue in FY2022, followed by a decrease in FY2023, indicating fluctuating market dynamics.

Profitability: 

A steady increase in Profit After Tax (PAT) across three years demonstrates growing profitability, an encouraging sign for investors.

Expense Management: 

The alignment of expenses with revenue growth points to scalable operations, though the fluctuation in revenue underscores the need for vigilant cost control.

Return on Net Worth (RoNW): 

High RoNW figures, albeit with a slight decrease in FY2023, highlight efficient profit generation from equity.

Earnings Per Share (EPS): 

The consistent rise in diluted EPS suggests an increasing profitability per share, which is beneficial for shareholders.

Debt to Equity Ratio:

A decreasing debt-to-equity ratio over the years indicates an improving financial risk profile.

Liquidity and Efficiency: 

Stable liquidity, as shown by the current ratio, and an improving inventory turnover ratio signal efficient asset management.

MVK Agro Food Product Limited IPO Financial Information 

ParticularAs of 31 March 2021As of 31 March 2022As of 31 March 2023
Revenue (₹ in lakhs)2,283.4013,067.119,327.65
Equity (₹ in lakhs)640.419 60.221,337.67
Expenses (₹ in lakhs)2,397.7412,845.848,902.33
Profit and Loss After Tax (₹ in lakhs)140.41319.813 77.45
RoNW (%)35.4839.9632.85
Diluted EPS only (₹)3.356.407 .55
NAV per Equity Share (₹)26.75
Total Assets (in lakhs)11,445.7011,602.0615,471.93
Total Liabilities (in lakhs)10,805.2910,641.8414,134.25
Debt to Equity Ratio11.716.256.84
Current Ratio0.830.810.86
Inventory Turnover Ratio 0.402.531.57

M.V.K. Agro Food Product IPO Peer Comparison

M.V.K. Agro Food Product Ltd, with revenue of ₹9,327.65 lakhs and a P/E ratio of 15.90, demonstrates efficient growth and profitability. Its EPS of ₹7.55 and RoNW of 28.22% outshine peers, indicating strong potential despite its smaller scale compared to giants like Balrampur Chini and Dwarikesh Sugar.

CompanyRevenue (₹ in lakhs)Face Value per Equity Share (₹)P/E Ratio (Times)EPS (₹)RoNW (%)NAV per Equity Share (Basic) (₹)
M.V.K. Agro  Food Product Limited9,327.651015.907.5528.2226.75
Ugar Sugar Works Ltd.1,94,014.9518.859.1646.1419.63
Dwarikesh Sugar Industries Ltd2,10,296.00115.605.5714.0839.29
Balrampur Chini Mills Ltd4,66,586.00128.7813.949.60143.52
Dhampur Sugar Mill Ltd2,87,402.001010.4823.720.1515.71

M.V.K. Agro Food Product IPO Objective 

The main objective of MVK Agro Food Product Limited is to establish an ethanol, bio-CNG, fertilizer unit in Nanded, Maharashtra. 

  1. Setting up a greenfield unit in Nanded, Maharashtra for (i) manufacturing Ethanol and (ii) generation and bottling of Bio-CNG and Fertilizer: The company intends to use INR 52.38 crores from the Net Proceeds to establish an ethanol, bio-CNG, fertilizer unit in Nanded, Maharashtra, diversifying its portfolio with a greenfield unit for manufacturing ethanol and generating bio-CNG and fertilizer. 
  1. General Corporate Purposes: The Company plans to deploy the balance funds towards the general corporate goals, including strategic initiatives, procurement, brand building, and corporate exigencies funded through diversified revenue streams. 

M.V.K. Agro Food Product Ltd IPO Risks And Challenges 

MVK Agro Food Limited’s risk includes uncertainty in the timely operation of the manufacturing unit, limited experience in the new product portfolio, and reliance on intermediaries for revenue, impacting business operations and financial stability. 

  • The company cannot guarantee the timely or efficient operation of the proposed manufacturing unit, potentially impacting business, operations, and financial conditions if commissioning faces delays or cost overruns. 
  • Limited experience in manufacturing ethanol, bio-CNG, and fertilizer outside the existing portfolio complicates past performance and prospect evaluation, posing challenges in assessing business growth and risk management. 
  • Reliance on domestic brokers and export-oriented traders for substantial revenue makes the company vulnerable to downturns if any essential intermediary experiences decreased sales, impacting business and operational results. 

MVK Agro Food Product Limited IPO  – Industry & Market Potential 

Sugar cane, a highly efficient energy converter, is widespread in diets globally and is a vital biofuel source. It has historically been traded across continents and reached prominence during European colonial expansion. 

India’s sugar sector, ranking second among agro-based industries, leads globally in production, supporting rural livelihoods and employing 500 thousand workers. Ethanol diversion aims to boost revenue, supported by government initiatives and increased demand. 

India’s agricultural sector demonstrates robust growth, with record food grain and horticulture production. The country ranks among the top exporters, with expanding segments like organic food and processed goods, aiming for significant market expansion by 2025. 

M.V.K. Agro Food Product Ltd IPO  – Type of Offer 

MVK Agro Food Product Limited will have a fresh issue of 54,90,000 shares worth INR 65.88 crores. The company seeks funds to initiate Ethanol, bio-CNG, and fertilizer plants in Nanded, Maharashtra, for sustainable production and general corporate purposes. 

MVK Agro Food Product Limited IPO Offer Size 

The offer size of MVK Agro Food Product Limited is INR 65.88 crores. The company seeks funds to initiate ethanol, bio-CNG, and fertilizer plants in Nanded, Maharashtra, for sustainable production and general corporate purposes. 

M.V.K. Agro Food Product Ltd IPO Allotment Structure 

M.V.K Agro Food Limited’s IPO allotment structure includes a category for Retail Individual Investors (RII) with investments below ₹2 lakhs, a category for other investors exceeding ₹2 lakhs, and a reservation of 2,74,800 shares for Market Makers.

  • Retail Individual Investors (RII): These individual investors apply for shares with a total value of less than Rs.2 lakhs.
  • Other than retail individual investors: Such applications where the value exceeds INR 2 lakhs.
  • Market Maker Reservation: A certain percentage or number of shares is reserved for market makers. The company has set aside 2,74,800 shares for this purpose.

How to apply for an M.V.K Agro Food IPO through Alice Blue?

To apply for the M.V.K Agro Food IPO through Alice Blue, you would typically follow these steps:

  1. Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
  2. Check for IPO Details: Once your account is active, you can check for the M.V.K Agro Food IPO details in the IPO section of the Alice Blue platform.
  3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
  4. Submit the Application: Confirm all your details and submit your application.

 You can apply for  M.V.K Agro Food IPO at Alice Blue in just a few clicks!

 Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

 Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How to check M.V.K Agro Food IPO Allotment Status on Alice Blue?

 Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

 Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.

  1. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
  2. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
  3. Select the M.V.K Agro Food IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the M.V.K Agro Food IPO.
  4. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.

 Apart from Alice Blue, there are other ways to check the allotment status of the M.V.K Agro Food IPO:

●  Registrar’s Website: Visit MAS Services Limited’s website, the M.V.K Agro Food IPO registrar. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

●  NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) SME (Small Medium Enterprise) Platform. You would need your application number and PAN to check the status.

 Please note that the allotment status will only be available after completing the allotment process, a few days after the IP