The listing of MVK Agro Food Product on the NSE SME started on a subdued note, with the share price opening at ₹79, marking a steep decline of 34.17% from its issue price of ₹120. This lower-than-expected debut on the stock market primarily concerns the company’s initial public offering, which was aimed at raising ₹65.88 crore. The funds raised are earmarked for establishing a greenfield unit in Nanded, Maharashtra, focusing on Ethanol manufacturing and bio-CNG generation.
Despite this initial dip in share price during its market debut, MVK Agro Food Product saw a quick shift in momentum, with its stock reaching a 5% upper circuit shortly after opening. This suggests a rebound in investor confidence following the initial downturn. The IPO was set with a price band of ₹120 per share, and the share lot size for investors was fixed at 1,200 shares. This meant that investors could bid for a minimum of 1,200 shares and then in multiples, offering flexibility in investment amounts. The company’s foray into the sustainable energy sector with its planned Ethanol and bio-CNG production facilities is a significant step, although it remains to be seen how this will influence its market performance in the longer term.
