Mayank Cattle Food
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 29 Jan 2024 – 31 Jan 2024
- Listing date
- 05 Feb 2024
- Face value
- ₹10 per share
- Issue price
- ₹108 per share
- Lot size
- 1,200 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹19.44 Cr
- Market cap at offer price
- ₹58.32 Cr
- Promoter holding
- 97.50% → 65.00% pre-issue → post-issue
- ISIN
- INE0R5Z01015
- Registrar
- Cameo Corporate Services Ltd.
- Lead managers
- Finshore Management Services Ltd.
- Registered office
- R.S.No.162, Rajkot Jamnagar Highway, Near Khandheri Stadium, Vill.Naranka, Tal.Paddha, Gujarat
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 | 90,000 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹108
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,29,600 |
| S-HNI (min) | 2 | 2,400 | ₹2,59,200 |
| S-HNI (max) | 7 | 8,400 | ₹9,07,200 |
| B-HNI (min) | 8 | 9,600 | ₹10,36,800 |
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
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 3.65 | 3.19 |
| P/E (×) | 29.59 | 33.86 |
| Price to book (×) | 0.45 | — |
| Market cap | — | ₹58.32 Cr |
Key performance indicators
- Return on net worth
- 27.61%
- ROCE
- 11.27%
- Debt / equity
- 9.13
- PAT margin
- 0.43%
- NAV per share
- ₹13.22
- Price to book
- 0.45
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Mayank Cattle Food
Mayank Cattle Food Limited, incorporated on April 21, 1998, and converted to a public limited company on June 23, 2023, is engaged in the manufacturing of maize cake and maize oil (non-edible). The business process involves purchase of maize germs, mechanized expelling, packaging, and selling of maize oil and maize cake. The company operates a manufacturing facility equipped with the latest machinery and technology, spread over approximately 87,133 sq.ft., located at R.S. No. 162, Rajkot Jamnagar Highway, Naranka, Paddhari, Rajkot, Gujarat. The facility benefits from strategic location providing easy access to raw materials and transportation on a well-developed highway with strong infrastructure including electricity, water, and communication connectivity. As of financial year 2023-24, the company has expanded its installed capacity to 22,896 MT per annum for maize oil and 45,792 MT per annum for maize cake.
Company Analysis
from RHPMayank Cattle Food Limited manufactures non-edible maize oil and maize cake (cattle feed) through mechanized expelling of maize germs, operating in the specialty oils and animal feed industries.
Mayank Cattle Food Limited, incorporated on April 21, 1998, and converted to a public limited company on June 23, 2023, is engaged in the manufacturing of maize cake and maize oil (non-edible). The business process involves purchase of maize germs, mechanized expelling, packaging, and selling of maize oil and maize cake. The company operates a manufacturing facility equipped with the latest machinery and technology, spread over approximately 87,133 sq.ft., located at R.S. No. 162, Rajkot Jamnagar Highway, Naranka, Paddhari, Rajkot, Gujarat. The facility benefits from strategic location providing easy access to raw materials and transportation on a well-developed highway with strong infrastructure including electricity, water, and communication connectivity. As of financial year 2023-24, the company has expanded its installed capacity to 22,896 MT per annum for maize oil and 45,792 MT per annum for maize cake.
Objects of the Issue
- Funding Capital Expenditure toward purchase of additional plant and machinery ₹184.33 lakhs p.17
- Working Capital Requirement ₹1,214.67 lakhs p.17
- Issue Related Expenses ₹145.00 lakhs p.17
- General Corporate Expenses ₹400.00 lakhs p.17
- Funding Capital Expenditure towards purchase of additional plant and machinery ₹184.33 lakhs p.72
- Working Capital Requirement ₹1,214.67 lakhs p.73
- Issue Related Expenses ₹145.00 lakhs p.76
- General Corporate Purposes ₹400.00 lakhs p.73
Issue Structure
- Total Issue
- ₹1,944.00 Lakhs (18,00,000 equity shares)
- Fresh Issue
- ₹1,944.00 Lakhs (18,00,000 equity shares)
- Offer for Sale
- Nil
- Price Band
- ₹108/- per equity share (fixed price issue)
- Lot Size
- 1,200 equity shares
- Face Value
- ₹10/- per equity share
Business Model
The company manufactures and sells non-edible maize oil and maize cake (cattle feed) through a process of purchasing maize germs, mechanized expelling, packaging, and direct sales to customers. Revenue is generated from the sale of these two primary products sourced from indigenous raw materials procured from various states in India.
Business Segments
SWOT Analysis
- • Strategic manufacturing location with good infrastructure connectivity(p.16)
- • Expanded production capacity in recent years(p.16)
- • Established presence in animal feed industry with growing market demand(p.17)
- • Established manufacturing facility with modern machinery and strategic location(p.107)
- • Strong customer relationships and repeat business from existing clients(p.107)
- • Qualified and experienced management team driving growth(p.107)
- • Quality assurance focus and accreditations(p.107)
- • Expanded production capacity in recent years(p.102)
- • Established supplier relationships with terms and pricing protections(p.107)
- • Established production capacity with recent expansion(p.210)
- • Modern manufacturing facility with strategic location(p.210)
- • Energy efficiency through renewable power(p.211)
- • Quality focus and skilled workforce(p.211)
- • Compliance with SME Platform eligibility criteria and regulatory requirements(p.231)
- • Positive cash accruals and financial performance(p.231)
- • Positive net worth and tangible assets meeting regulatory thresholds(p.230)
- • Established operational infrastructure with website and dematerialization agreements(p.231)
- • Clean compliance record with no regulatory sanctions or debarment(p.229)
- • High dependence on limited number of suppliers(p.24)
- • High dependence on few major customers(p.26)
- • Low operating margins(p.23)
- • History of negative cash flows(p.23)
- • Significant working capital requirements(p.25)
- • Single manufacturing facility concentration(p.26)
- • Significant indebtedness with personal guarantees from promoters(p.32)
- • KYC document discrepancies for promoters and directors(p.25)
- • Non-traceable education and experience certificates of promoters/directors(p.31)
- • Heavy dependence on a few major customers for revenue(p.108)
- • Insufficient geographic market reach limited to few states(p.101)
- • Heavy dependence on suppliers for right quality of raw materials(p.110)
- • Working capital intensive business model(p.110)
- • High financial leverage(p.199)
- • Low cash reserves(p.189)
- • Minimal profitability margin(p.200)
- • Pending promoter income tax litigation(p.219)
- • Dependence on related party financing(p.209)
- • Mandatory two-year lock-in on SME Platform before main board migration(p.245)
- • Minimum 50 allottees requirement with full refund if not met(p.242)
- • Reliance on 100% underwriting with minimum 15% by lead manager(p.230)
- • No investor complaints history disclosure limitations(p.239)
- • Growing global animal feed market expansion potential(p.17)
- • Export opportunities in edible and animal feed products(p.17)
- • Addressing India's fodder deficit gap(p.17)
- • Capacity expansion plans funded by IPO proceeds(p.18)
- • Geographic market expansion beyond Gujarat(p.23)
- • Expansion into neighboring states with growing cattle feed demand(p.110)
- • Strong growth trajectory in Indian animal feed market(p.98)
- • High growth in cattle feed segment with 15% CAGR(p.98)
- • Opportunities in Asian export markets(p.110)
- • Growing acceptance by consumers(p.110)
- • Increase in volume of sales through expansion and diversification(p.107)
- • Capacity expansion strategy(p.210)
- • Geographic market expansion(p.211)
- • Public listing for growth capital(p.212)
- • Potential migration to main board after two-year SME Platform tenure(p.245)
- • Market making support for three years providing liquidity(p.245)
- • Access to capital market for growth and expansion(p.247)
- • Enhanced accessibility through multiple application channels(p.263)
- • Volatility in raw material prices(p.22)
- • Import duty changes affecting competitive positioning(p.24)
- • Monsoon and climatic dependency(p.24)
- • Seasonal fluctuations in demand and production(p.27)
- • Intense competition from domestic and multinational players(p.29)
- • Regulatory and government compliance risks(p.27)
- • Transportation and logistics disruptions(p.27)
- • Electricity supply shortage risk(p.29)
- • COVID-19 and future pandemic risks(p.41)
- • Fluctuations in raw material prices(p.110)
- • Intense competitive pressure from both organized and unorganized players(p.110)
- • Rising labour wages increasing operational costs(p.110)
- • Industry vulnerability to government policy changes(p.110)
- • Restrictions on use of genetically modified crops affecting production costs(p.98)
- • Price volatility of key feedstock inputs(p.99)
- • Commodity price volatility and import competition(p.214)
- • Agricultural weather dependency(p.214)
- • Seasonal demand variation(p.217)
- • Intense competitive pressure(p.212)
- • Regulatory and compliance risks(p.212)
- • COVID-19 pandemic impact(p.212)
- • Regulatory discretion in listing and trading approvals(p.247)
- • Potential forced share buyback obligations for odd lot holders(p.244)
- • Minimum contract size trading requirement limiting liquidity(p.244)
- • Interest liability on delayed refunds and allotments(p.236)
- • Restrictions on foreign investor participation and transfer limits(p.244)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Bharatkumar Popatlal Vachhani | Promoter | 26.25% | — |
| Ajay Popatlal Vachhani | Promoter | 26.25% | — |
| Bharatkumar Popatlal Vachhani | Promoter | 26.25% | 17.50% |
| Ajay Popatlal Vachhani | Promoter | 26.25% | 17.50% |
| Bharatkumar Popatlal Vachhani | Promoter/Managing Director | 26.25% | 17.50% |
| Ajay Popatlal Vachhani | Promoter/Wholetime Director | 26.25% | 17.50% |
| Ajay P. Vachhani | Promoter | 26.25% | — |
| Bharat P. Vachhani | Promoter | 26.25% | — |
| Ashwin G. Patel | Promoter Group | 11.20% | — |
Leadership
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.