MR Maniveni Foods Makes Lackluster Debut on BSE SME; Lists 18% Below IPO Price
M.R.Maniveni Foods IPO Listing Falls Short of Expectations
Shares of M.R.Maniveni Foods made a disappointing debut on the BSE SME platform on Monday, 1 June, listing at an over 18% discount to the initial public offering (IPO) price. The company's share price listed at ₹42.55, down ₹9.45 or 18.17% compared with the offer price of ₹52. Despite the initial decline, the SME stock recovered a bit and touched the day's peak of ₹44.66, rising almost 5% from the listing price.
The listing was significantly below expectations as signalled by the grey market premium (GMP). M.R.Maniveni Foods IPO GMP was nil, suggesting a listing at no discount or premium. This unexpected development may have contributed to the initial decline in the company's share price.
IPO Details
| IPO Details | Value |
|---|---|
| Issue Size | ₹27 crore |
| Subscription Period | 22 May to 26 May |
| Subscription Ratio | 1.51 times |
| Retail Investor Subscription | 2.06 times |
| Non-Institutional Investor Subscription | 1.88 times |
The IPO was open for bidding from 22 May till 26 May, with the company looking to raise ₹27 crore via the share sale. The offer was subscribed 1.51 times at the end of the subscription period. The retail investors' portion was booked 2.06 times, while the non-institutional investor (NII) portion received 1.88 times bids. The offer price band was set at ₹51 to ₹52.
The SME IPO was entirely a fresh issue of 0.52 crore shares, meaning that all proceeds raised will go to the company. The company plans to use the proceeds from the IPO for funding capex towards the construction of the factory, purchase of the plant and machinery, and general corporate purposes. Investors could apply for the offer in lots of 2,000 shares, with a retail investor needing to apply for at least two lots, resulting in a payout of ₹2,08,000 at the upper end of the issue.
The allotment for M.R.Maniveni Foods IPO was finalised on 27 May. Capital Square Advisors acted as the book-running lead manager, and Bigshare Services is the registrar of the issue. M.R.Maniveni Foods is engaged in the business of processing, packaging, and distribution of food products. The company focuses on offering quality, safe, and hygienically prepared food items catering to diverse consumer preferences.
Investor Takeaway
Investors should be cautious when investing in IPOs with grey market premiums at nil.
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