M.V.K. Agro Food Product
SME₹65.88 Cr issue
-34.17%
Listing gain over issue price
Issue size
₹65.88 Cr
1 lot at cut-off
₹1,44,000
Lot size
1,200shares
Open
29 Feb 2024
Close
04 Mar 2024
Allotment
05 Mar 2024
Listing
07 Mar 2024
Listing performance
Issue price
₹120
Listed at
₹79
Listing-day close
₹82.95
Latest price
₹209
Close on 23 Oct 2026
Listing gain
-34.17%
Return since issue
+74.17%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 29 Feb 2024 – 04 Mar 2024
- Listing date
- 07 Mar 2024
- Face value
- ₹10 per share
- Issue price
- ₹120 per share
- Lot size
- 1,200 shares
- Total issue size
- ₹65.88 Cr
- Market cap at offer price
- ₹186 Cr
- Promoter holding
- 100.00% → 64.56% pre-issue → post-issue
- ISIN
- INE0SGC01015
- Registrar
- MAS Services Ltd.
- Lead managers
- Horizon Management Pvt.Ltd.
- Registered office
- GUT No.44 and 46, Kusumnagar, At Post, Waghalwada, Umari, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 2,74,800 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹120
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,44,000 |
| S-HNI (min) | 2 | 2,400 | ₹2,88,000 |
| S-HNI (max) | 6 | 7,200 | ₹8,64,000 |
| B-HNI (min) | 7 | 8,400 | ₹10,08,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
₹120 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 3.77 | 5.55 |
| P/E (×) | 31.83 | 21.62 |
| Price to book (×) | 4.49 | — |
| Market cap | — | ₹186 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 32.85%
- ROCE
- 13.44%
- Debt / equity
- 6.84
- PAT margin
- 4.02%
- NAV per share
- ₹35.35
- Price to book
- 4.49
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About M.V.K. Agro Food Product
M.V.K. Agro Food Product Limited, incorporated on February 2, 2018, is an integrated sugar and other allied products manufacturing company operating from Nanded District in Maharashtra. The company operates a single sugar unit with licensed crushing capacity of 2,500 TCD. In addition to sugar, the company commercializes and sells by-products and waste products including molasses, bagasse, and pressmud, and is engaged in power generation for captive consumption through co-generation capabilities. The company commenced sugar manufacturing operations in 2020 and has completed three crushing seasons by fiscal 2023. The company plans to further diversify by setting up a greenfield unit for manufacturing ethanol and generation of bio-CNG and fertilizer.
Company Analysis
from RHPM.V.K. Agro Food Product Limited is an integrated sugar and allied products manufacturing company operating in Maharashtra that produces sugar, molasses, bagasse, pressmud, and power through co-generation, with plans to diversify into ethanol, bio-CNG, and fertilizer manufacturing.
M.V.K. Agro Food Product Limited, incorporated on February 2, 2018, is an integrated sugar and other allied products manufacturing company operating from Nanded District in Maharashtra. The company operates a single sugar unit with licensed crushing capacity of 2,500 TCD. In addition to sugar, the company commercializes and sells by-products and waste products including molasses, bagasse, and pressmud, and is engaged in power generation for captive consumption through co-generation capabilities. The company commenced sugar manufacturing operations in 2020 and has completed three crushing seasons by fiscal 2023. The company plans to further diversify by setting up a greenfield unit for manufacturing ethanol and generation of bio-CNG and fertilizer.
sugar manufacturingagro-processingpower generation (co-generation)food processing
Objects of the Issue
- Setting up a greenfield unit in Nanded, Maharashtra for manufacturing Ethanol and generation and bottling of Bio-CNG and Fertilizer ₹ 5,238.17 lakhs p.22
- General Corporate Purpose ₹ 587.08 lakhs p.22
- Setting up a greenfield unit in Nanded, Maharashtra for (i) manufacturing Ethanol and (ii) generation and bottling of Bio-CNG and Fertilizer ₹5,238.17 lakhs p.83
- General corporate purposes ₹587.08 lakhs p.83
- Setting up greenfield manufacturing unit for Ethanol production ₹3,488.17 lakhs p.119
- Setting up Bio-CNG bottling and fertiliser plant ₹1,750.00 lakhs p.119
- Funding capex for the new plant for manufacturing Ethanol and generation of Bio-CNG and Fertilizer p.261
- General corporate purposes and issue expenses p.274
Issue Structure
- Total Issue
- ₹ 6,588 lakhs (up to 54,90,000 equity shares of face value ₹ 10 each)
- Fresh Issue
- Up to 54,90,000 equity shares of ₹ 120/- each aggregating up to ₹ 6,588 lakhs
- Offer for Sale
- Nil (entire issue constitutes fresh issue)
- Price Band
- ₹ 120/- per equity share (fixed price)
- Lot Size
- 1,200 equity shares and in multiples of 1,200 thereafter
- Face Value
- ₹ 10/- per equity share
Business Model
The company operates an integrated sugar manufacturing model with two business segments: (1) Sugar and its by-products/waste products segment, and (2) Power generation through co-generation. Revenue is generated through manufacturing and sale of sugar in different grades, commercialization of molasses, bagasse and pressmud from sugar production, and power generation for captive consumption. Products are marketed through domestic brokers and export-oriented commodity traders who distribute to institutional confectionery manufacturers and international buyers.
Business Segments
Manufacturing and commercialization of sugar, molasses, bagasse, and pressmud (by-products and waste products of sugar production)
Generation of power for captive consumption through co-generation capabilities
Manufacturing of sugar from sugarcane
Production of molasses from sugarcane processing
Production of bagasse (residue from sugarcane processing)
Production of pressmud from sugarcane processing
Manufacturing and sale of sugar from sugarcane with licensed crushing capacity of 2,500 TCD. Sugar is differentiated into grades M30, SS30 and S30 based on crystal size. Sold through domestic brokers to institutional manufacturers (confectionery, bakery products) and to export-oriented commodity traders.
Commercialization of residual materials from sugar production: (1) Bagasse - fibrous residual after juice extraction, 85% used for captive power generation (3 MW), balance sold to local traders for biomass briquettes/bio-coal; (2) Molasses - residue after centrifugation of massecuite, sold to domestic ethanol manufacturers; (3) Pressmud - clarification residue, sold to farmers as organic fertilizer.
Dairy operations through wholly owned subsidiary Sai Krupa Dairy & Food Products Private Limited acquired in 2023. Processes and sells retail milk (full cream, standardised, toned, double toned) and produces dairy value-added products (paneer, lassi, cream, khoya). Procurement from ~7,500 farmers (15,000 MLPD as of Nov 30, 2023), processing through 30,000 MLPD capacity plant in Nanded, distribution in Maharashtra through local retailers and traders.
Co-generation unit with 3 MW installed capacity from bagasse combustion. Entire electricity requirement during crushing season met from in-house generation. Standby DG sets available. Excess power available for export after meeting captive needs. Plans to sell exportable power through PPAs or open sale.
Manufacturing of sugar with licensed crushing capacity of 2,500 tonnes per day; commercialization of by-products including molasses, bagasse, and pressmud; captive power generation from bagasse.
Manufacturing of dairy products through wholly-owned subsidiary Sai Krupa Dairy & Food Products Private Limited (operational from April 1, 2023).
Manufacturing and refining of sugar through vacuum pan sugar factories
Production and sale of jaggery
Manufacturing of food products through Sai Krupa Dairy & Food Products Private Limited
SWOT Analysis
Strengths
- • Integrated sugar producer with diversified product portfolio(p.21)
- • Backward integration with co-generation capabilities(p.21)
- • Established relationships with domestic brokers and export-oriented commodity traders(p.31)
- • Three completed crushing seasons demonstrating operational experience(p.21)
- • Integrated operations with economies of scale(p.92)
- • Strategic location of manufacturing unit(p.92)
- • Strong relationships with sugarcane farmers(p.92)
- • Captive power generation(p.92)
- • Established customer base(p.92)
- • Quality management systems in place(p.92)
- • Experienced management team(p.92)
- • Integrated sugar manufacturing with backward integration and zero-wastage operations(p.120)
- • Established long-term relationships with sugarcane farmers ensuring continuous raw material supply(p.125)
- • Captive power generation reducing production costs and ensuring uninterrupted supply(p.126)
- • Established customer relationships with major FMCG brands and export-oriented traders(p.128)
- • Modern processing technology and high operational efficiency in sugar manufacturing(p.126)
- • Experienced management team with 20+ years in sugar, ethanol, milk and dairy manufacturing(p.121)
- • Strategic location in high sugarcane-producing region near Nanded, Maharashtra(p.125)
- • Recent capacity expansion and improved utilization rates demonstrating operational momentum(p.136)
- • Integrated sugar manufacturing with backward integration into by-products and waste material commercialization(p.231)
- • Zero-discharge, zero-wastage manufacturing unit with captive power generation from bagasse(p.231)
- • Established long-term relationships with major institutional customers through domestic brokers(p.231)
- • Direct sourcing from local farmers reduces costs and enables competitive pricing(p.232)
- • Farmer Development Division providing training and education support(p.232)
- • In-house quality control laboratory and stringent QA/QC standards(p.232)
- • Licensed crushing capacity of 2,500 TCD with modern technology for optimal resource utilization(p.233)
- • Experienced promoter with vast knowledge in sugar, jaggery, ethanol, milk product and dairy manufacturing(p.232)
Weaknesses
- • Limited experience in manufacturing Ethanol, Bio-CNG and Fertilizer(p.30)
- • Heavy dependence on sugarcane farmers with no contractual obligation(p.32)
- • No formal agreements with distribution intermediaries(p.31)
- • No product liability insurance coverage(p.33)
- • High debt-equity ratio with multiple personal guarantees(p.33)
- • Single geographic location with concentrated operations(p.34)
- • No insurance coverage for asset damage at manufacturing facilities(p.35)
- • Delays in payment of statutory dues(p.38)
- • High debt burden relative to EBITDA(p.95)
- • High concentration of revenue among top customers(p.97)
- • Very low cash balance relative to operations(p.57)
- • Inability to procure or maintain adequate insurance(p.49)
- • No history of dividend payments despite stated policy(p.49)
- • Vulnerability to fraud, employee negligence and theft(p.49)
- • Heavy dependence on a few major customers for sugar sales(p.135)
- • Young company with only three crushing seasons of operational history(p.119)
- • Seasonal nature of sugar manufacturing operations limiting annual revenue generation(p.128)
- • Limited brand presence and reliance on brokers for domestic market access(p.126)
- • Exposure to sugarcane price fluctuations through mandatory FRP (Fair and Remunerative Price)(p.112)
- • Limited operational history and unproven track record compared to established competitors(p.119)
- • High debt-to-equity ratio indicating significant leverage(p.226)
- • High financial costs representing 10.03% of revenue in FY2023(p.239)
- • Limited experience in Ethanol and Bio-CNG manufacturing outside core sugar business(p.234)
- • Heavy dependence on few major customers creating revenue concentration risk(p.237)
- • Current ratio below 1.0 indicating working capital deficit(p.226)
- • No formal dividend policy in place, limiting shareholder returns(p.182)
- • Very low current ratio indicating working capital stress(p.244)
- • Extremely high debt-to-equity ratio despite recent improvement(p.244)
- • Severely inadequate debt service coverage(p.244)
- • Very low inventory turnover indicating slow inventory movement(p.244)
- • Dramatically deteriorating trade receivable turnover(p.244)
- • Sharply declining trade payable turnover(p.244)
- • Negative working capital position(p.244)
- • Substantial financial indebtedness with restrictive covenants(p.245)
Opportunities
- • Government incentive for ethanol diversion from sugar(p.21)
- • Expansion into adjacent product categories through new manufacturing unit(p.21)
- • Growing demand for sugar in India driven by population and rising income(p.34)
- • India's leading position in global sugar production and export(p.21)
- • Government target to divert 60 lakh tonnes of sugar to ethanol by 2025(p.109)
- • Ethanol blending programme expansion to 20% by 2024-25(p.110)
- • Greenfield unit for bio-CNG and fertilizer production(p.84)
- • Strong sugar industry growth and export potential(p.109)
- • Government incentives for ethanol production(p.109)
- • Listing benefits and market visibility(p.84)
- • Government-led ethanol diversion program expanding significantly with higher prices(p.111)
- • Proposed greenfield unit for ethanol and bio-CNG production creating new revenue streams(p.127)
- • Rising domestic sugar prices due to lower production and supply constraints(p.112)
- • Growing Indian food processing industry with 100% FDI permitted in automatic route(p.115)
- • Strong expansion of Indian agricultural sector with government support and mechanization programs(p.113)
- • Increasing operational efficiency through energy-saving devices and export capacity expansion(p.127)
- • Acquisition of dairy subsidiary opening new market opportunities in milk and value-added products(p.122)
- • Strong growth tailwinds in Indian sugar industry with government support for ethanol integration(p.112)
- • Planned greenfield Ethanol, Bio-CNG and Fertilizer manufacturing unit to diversify revenue streams(p.230)
- • Expansion of existing product capacity across sugar and by-products(p.230)
- • Growing domestic institutional demand for sugar from major confectionery and beverage manufacturers(p.231)
- • Export opportunities through commodity traders with international buyer relationships(p.231)
- • Sustainable and eco-friendly product positioning aligns with increasing market demand for green products(p.232)
Threats
- • Cyclical sugar industry subject to supply-demand fluctuations(p.34)
- • Government-regulated sugarcane procurement price(p.34)
- • Adverse weather conditions affecting sugarcane crop yields(p.32)
- • Intense competition from numerous Indian sugar manufacturers(p.35)
- • Seasonal business variability affecting operations and cash flows(p.32)
- • Stringent food safety and regulatory compliance requirements(p.45)
- • Extreme weather and natural calamities impacting agriculture(p.54)
- • Regulatory changes in tax and GST laws(p.53)
- • Dependence on Indian economic conditions(p.53)
- • Foreign investment restrictions and RBI approval requirements(p.53)
- • Political instability affecting India's economy(p.54)
- • Global economic and commodity price volatility(p.54)
- • Terrorist attacks and civil unrest affecting markets(p.54)
- • Government regulation of entire sugar value chain including prices and export quotas(p.112)
- • Government sugar export restrictions limiting international sales opportunities(p.112)
- • Severe competition from organized and unorganized sugar mills across India(p.137)
- • Weather dependency with adverse impact of inadequate rainfall on cane production(p.112)
- • Sugarcane production sensitivity to monsoon patterns and climate conditions(p.125)
- • International sugar prices significantly higher than domestic prices limiting export competitiveness(p.112)
- • Cyclical sugar industry dynamics affecting demand and pricing volatility(p.112)
- • Seasonal variation in sugarcane availability and production affecting revenue cyclicality(p.233)
- • Dependence on sugarcane availability with weather-related crop failure risk(p.234)
- • Fragmented and highly competitive sugar industry with low entry barriers(p.243)
- • Revenue decline in FY2023 due to lack of rainfall and sugarcane shortage in western India(p.239)
- • Risk of new manufacturing unit not achieving scheduled commissioning or full capacity utilization(p.234)
- • Regulatory approvals and permits not yet obtained for proposed greenfield unit(p.234)
- • Debt service coverage ratio below 1.0 indicating difficulty in servicing debt from operations(p.226)
- • Default events triggered by shareholding pattern changes could accelerate debt repayment(p.246)
- • Lenders can enforce security and accelerate recovery in case of breach(p.247)
- • Risk of willful defaulter classification by RBI with severe consequences(p.247)
- • Lender can appoint board nominees reducing management autonomy(p.247)
- • Restrictions on dividend payment and related-party transactions(p.247)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Marotrao Vyankatrao Kawale | Promoter | 83.88% | 54.15% |
| Sagarbai Marotrao Kawale | Promoter | 0.02% | 0.01% |
| Ganeshrao Vyankatrao Kawale | Promoter | 4.02% | 2.60% |
| Kishanrao Vyankatrao Kawale | Promoter | 4.02% | 2.60% |
| Sandip Marotrao Kawale | Promoter | 4.02% | 2.60% |
| Marotrao Vyankatrao Kawale | Promoter | 83.88% | 54.15% |
| Ganeshrao Vyankatrao Kawale | Promoter | 4.02% | 2.60% |
| Kishanrao Vyankatrao Kawale | Promoter | 4.02% | 2.60% |
| Sagarbai Marotrao Kawale | Promoter | 0.02% | 0.01% |
| Sandip Marotrao Kawale | Promoter | 4.02% | 2.60% |
| Puja Marotrao Kawale | Promoter Group | 0.02% | 0.01% |
| Parmeshwar Kishanrao Kawale | Promoter Group | 4.02% | 2.60% |
| Marotrao Vyankatrao Kawale | Promoter | 83.88% | 54.15% |
| Ganeshrao Vyankatrao Kawale | Promoter | 4.02% | 2.60% |
| Kishanrao Vyankatrao Kawale | Promoter | 4.02% | 2.60% |
| Sagarbai Marotrao Kawale | Promoter | 0.02% | 0.01% |
| Marotrao Vyankatrao Kawale | Promoter | 83.88% | — |
| Sagarbai Marotrao Kawale | Promoter | 0.02% | — |
| Ganeshrao Vyankatrao Kawale | Promoter | 4.02% | — |
| Kishanrao Vyankatrao Kawale | Promoter | 4.02% | — |
| Sandip Marotrao Kawale | Promoter | 4.02% | — |
| Marotrao Vyankatrao Kawale | Promoter/Director | — | — |
| Sagarbai Marotrao Kawale | Promoter/Director | — | — |
| Ganeshrao Vyankatrao Kawale | Promoter/Director | — | — |
| Kishanrao Vyankatarao Kawale | Promoter/Director | — | — |
Leadership
Sandip Marotrao Kawale · Chief Financial Officer
Swapna Rajaram Bansode · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
M.V.K. Agro Food Product IPO FAQs
What is the lot size of M.V.K. Agro Food Product IPO?
The minimum lot size of M.V.K. Agro Food Product IPO is 1,200 shares. One lot costs ₹1,44,000 at the cut-off price.
When does M.V.K. Agro Food Product IPO open and close?
M.V.K. Agro Food Product IPO opened for subscription on 29 Feb 2024 and closed on 04 Mar 2024.
What is the listing date of M.V.K. Agro Food Product IPO?
M.V.K. Agro Food Product IPO listed on 07 Mar 2024.