M R Maniveni Foods IPO Sees 101% Subscription on Initial Listing Day
M R Maniveni Foods
IPOM R Maniveni Foods Sees Strong Demand for IPO on First Day of Bidding
On May 22, M R Maniveni Foods, a leading supplier of processed pulses to large-format retailers, wholesalers, and e-commerce platforms, witnessed a robust demand for its initial public offering (IPO) from investors. The public issue was fully subscribed at 1.01 times, with investors bidding for 37.78 lakh shares against the offer size of 37.3 lakh shares via 426 applications.
The company received support from investors across various categories, with non-institutional investors and qualified institutional buyers bidding 1.23 times and 1 time their allotted quotas, respectively. The part set aside for retail investors was subscribed 89 percent. The public issue will remain open till May 26.
Chennai-based M R Maniveni Foods, specialising in the milling, processing, and supply of urad and toor dal, has approached the capital markets to raise Rs 27.04 crore via an IPO of 52 lakh shares at the upper end of the price band of Rs 51-52 per share. Of this, Rs 7.64 crore has already been raised by the company from two anchor investors - Craft Emerging Market Fund and Longthrive Capital.
The company plans to utilise the proceeds from the IPO for various purposes, including Rs 12.68 crore for the construction of a factory, Rs 13.61 crore for the purchase of plant and machinery, and the balance amount for general corporate purposes. Currently, M R Maniveni Foods operates two milling units in Chennai, with the milling process for urad dhal being fully automated and the toor dhal facility functioning under a semi-automated setup.
To further strengthen its production capacity and operational efficiency, the company has proposed the establishment of a fully automated toor dhal processing plant. This proposed facility aims to ensure uninterrupted production and enhance overall throughput by processing raw pigeon peas (toor dhal) into high-quality toor dhal, leveraging advanced technology and automation.
| Category | Allotted Quota | Subscription | Times of Allotted Quota |
|---|---|---|---|
| Non-institutional Investors | - | 1.23 lakh shares | 1.23 |
| Qualified Institutional Buyers | - | 37.3 lakh shares | 1 |
| Retail Investors | 3.77 lakh shares | 3.36 lakh shares | 0.89 |
Capitalsquare Advisors has been appointed as the merchant banker for managing the M R Maniveni Foods IPO.
Read also: SMR Jewels IPO Successfully Lists with Institutional Support
Investor Takeaway
Investors should note that the IPO has seen a strong subscription, indicating potential for future growth.
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