MR Maniveni Foods IPO Sees 1.36 Times Subscription on Second Day, Closes Tuesday
M R Maniveni Foods
IPOM R Maniveni Foods IPO Subscribed 1.36 Times on Second Day of Bidding
M R Maniveni Foods, a leading urad and toor dal milling and processing company, saw its initial public offering (IPO) subscribed 1.36 times on May 25, the second day of bidding. The company had tapped the capital markets last week to raise Rs 27 crore via an IPO of 52 lakh shares at the upper end of the price band of Rs 51-52 per share. The issue will remain open for subscription till May 26.
The strong response to the IPO has come from investors, with 50.76 lakh shares being bid for in the last two days against the offer size of 37.3 lakh shares via 718 applications. Retail investors have led the charge, with a subscription of 1.53 times. Non-institutional investors and qualified institutional buyers have also shown significant interest, with the portions set aside for them being subscribed 1.42 times and 100 percent, respectively.
Prior to the IPO, the company had raised Rs 7.64 crore by issuing 14.7 lakh shares to two anchor investors - Craft Emerging Market Fund PCC and Longthrive Capital VCC - on May 21. The company intends to utilize the proceeds from the IPO to strengthen its operations and infrastructure.
| Category | Subscription |
|---|---|
| Total | 1.36 times |
| Retail Investors | 1.53 times |
| Non-Institutional Investors | 1.42 times |
| Qualified Institutional Buyers | 100% |
The funds from the IPO will be utilized as follows: Rs 12.68 crore for the construction of a factory, Rs 13.61 crore for the purchase of plant and machinery, and the remaining amount for general corporate purposes. Currently, M R Maniveni Foods operates an automated pulses milling plant at Madhavaram, Chennai, where it operates two milling units dedicated to the milling of urad dhal and toor dhal, respectively.
The company has proposed the establishment of a fully automated toor dhal processing plant to further strengthen its production capacity and operational efficiency. The merchant banker managing the M R Maniveni Foods IPO is Capitalsquare Advisors.
Investor Takeaway
The MR Maniveni Foods IPO has seen a good subscription on the second day, indicating investor interest in the company.
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