Mayank Cattle Food LTD IPO: Review, Valuation, Date & GMP

Mayank Cattle Food Limited IPO  - Complete Overview

Mayank Cattle Food Limited, established in 1998 in Rajkot, Gujarat, is a company that mainly produces Maize Oil (non-edible) and Maize Cake (cattle feed). In recent years, the company has expanded its production to increase market presence. The manufacturing process begins with Maize Germ, and the company uses advanced techniques to produce Maize Oil and Maize Cake.

Products are marketed through agents, brokers, and direct sales, with a diverse customer base. The product portfolio includes Maize Oil, used in refining for edible oil, and Maize Cake, a nutritious cattle feed offering various benefits.

Mayank Cattle Food Limited maintains a strong focus on product quality, employing a skilled workforce and modern machinery to ensure high standards and continuous improvement.

Their manufacturing facility extends around 87,133 sq. ft. and has a production capacity of 22,896 MT/year for Maize Oil and 45,792 MT/year for Maize Cake.

As of December 31, 2023, they have 120 employees, and their products are distributed in regions like Gujarat, Delhi, and Maharashtra.

 

Mayank Cattle Food IPO Overview

Mayank Cattle Food Limited IPO date is slated to be open for subscription from January 29, 2024, to January 31, 2024. This BSE SME IPO follows a Fixed Price Issue IPO.

Mayank Cattle Food Limited IPO price is fixed at Rs. 108 per share. 

The total issue size of this IPO amounts to Rs.19.44 CR. The company has reserved 50% for retail investors and 50% for other investors. 

 

Mayank Cattle Food IPO timetable (Tentative)

Events	Date
IPO Opening Date	29 January 2024
IPO Closing Date	31 January 2024
IPO Allotment Date	1 February 2024
Refund initiation	2 February 2024
IPO Listing Date	5 February 2024

 

Mayank Cattle Food IPO Details

IPO Opening & Closing Date	29 January to 31 January 2024
Face value	Rs.10 per share
Issue Price	Rs.108  per share
Lot Size	1200 Shares
Price of 1 lot	Rs.1,29,600
Total Issue Size	1,800,000 Shares (aggregating up to Rs. 19.44 CR)
Fresh issue	1,800,000 Shares (aggregating up to Rs. 19.44 CR)
Listing at	BSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Cameo Corporate Services Limited

 

Mayank Cattle Food IPO Lot Details

Application	Lot	Shares
Minimum Lot Investment (Retail)	1 lot	1200
Maximum Lot Investment (Retail)	1 lot	1200
Minimum Lot Investment (HNI)	2 lot	1400

 

 

Mayank Cattle Food IPO Reservation

Retail Shares Offered	50%
Other Shares Offered	50%

 

Company Financial

As of July 31, FY 23, the company shows strong financials .

(Amount in Lakhs)

Period	July 31, FY 23	Mar 31, FY 23	Mar 31, FY 22
Total Assets	5,122.44	4,893.64	4,163.85
Total Revenue	7,527.15	30,958.14	32,300.17
PAT	57.37	131.43	79.92
Net worth	533.37	475.99	344.56
Reserve & Surplus	173.37	455.99	324.56
Total Borrowings	3,788.35	3,961.00	3,163.53

 

Revenue Distribution Product-wise

In FY 23 (as of July 31), Maize Oil, Maize Cake (Cattle Feed), and Empty Gunny/Plastic Bags were the primary revenue drivers.

(Amount in Lakhs)

Product	Jul 31, FY 23	Mar 31, FY 23	Mar 31, FY 22
Maize Oil	18,780.65	18,780.65	20,478.13
Maize Cake (Cattle Feed)	12,037.67	12,037.67	11,653.41
Empty Gunny/Plastic Bags	25.85	99.73	131.32
Total	7,508.16	30,918.05	32,262.87

 

Revenue Distribution Geographical-wise

In FY 23 (as of June 30), major revenue contributions came from Gujarat, Maharashtra, Haryana, Delhi, and Andhra Pradesh.

(Amount in Lakhs)

Particulars	Jun 30, FY 23	Mar 31, FY 23	Mar 31, FY 22
Gujarat	7,235.40	26,198.41	29,835.30
Maharashtra	53.58	1,674.86	92.19
Uttar-Pradesh	-	-	1,333.67
Haryana	68.20	433.36	625.32
Delhi	127.45	2,583.45	368.23
Karnataka	-	-	8.15
Andhra Pradesh	23.53	27.97
Total Domestic Sales	7,508.16	30,918.05	32,262.87

 

Revenue by Operations

Revenue from operations in FY 23, ending on July 31 contributed to the total revenue, reflecting a positive trend compared to FY 22.

(Amount in Lakhs)

Particulars	Jul 31, FY 23	Mar 31, FY 23	Mar 31, FY 22
Revenue from operations	7,508.16	30,918.05	32,262.87
Other Income	18.99	40.09	37.30
Total Revenue	7,527.15	30,958.14	32,300.17

 

 

 

The Objective of the Issue

The company intends to use the net proceeds for the following objectives.

• Funding Capital Expenditure towards the purchase of additional plant and machinery

• To meet the Working Capital Requirements

• To meet the Issue Expenses

• General Corporate Purposes

 

Promoters and Management of Mayank Cattle Food IPO

1. Mr. Bharatkumar Popatlal Vachhani. 

2.  Mr. Ajay Popatlal Vachhani.

Pre-issue Promoter Shareholding	97.50%
Post-issue Promoter Shareholding	65.00%

 

Mayank Cattle Food IPO Lead Managers

•  Finshore Management Services Limited

 

Peers of Mayank Cattle Food IPO

We believe that none of the listed companies in India offer products or services across the various business segments in which we operate. Hence a strict comparison is not possible.

 

Evaluation

The IPO is priced within the range of Rs. 108 per share.

Evaluation of P/E Ratio:

- Considering the FY23 EPS of Rs 3.65 from the last year, the resulting P/E ratio is 29.58x.

- Taking into account the weighted EPS of Rs 2.90 for the last three years, the P/E ratio amounts to 37.24x.

As a result, the IPO price range, with a P/E ratio ranging from 29.58x to 37.24x seems neutral in comparison to the industry average of 37.1x.

 

Dividend Policy

The company hasn't paid dividends in past fiscal years. Whether we can pay them in the future depends on factors like profits, past dividend trends, capital needs, legal restrictions, and other relevant considerations evaluated by our Board.

 

IPO's Strengths

• Quality Products.
• Quality assurance and Standard.
• Well Established Manufacturing facility.
• Experience Management Team.

 

IPO's Weaknesses

• Working Capital Intensive Business.
• Dependent upon growth in the food industry.
• Insufficient market reach.
• Heavy dependence on suppliers for the right quality of raw materials.

 

IPO GMP Today

The Latest GMP of Mayank Cattle Food Limited IPO is Rs. 9.

 

 

 

Conclusion

The Mayank Cattle Food Limited IPO is a chance for investors to get involved with a company that makes good products like Maize Oil and Maize Cake. The IPO opens for subscription from January 29 to January 31, 2024, with shares priced at Rs. 108 each. The company looks strong financially, and the IPO offers a well-organised investment opportunity. The total issue size is Rs. 19.44 CR, and they're giving 50% of the shares to regular investors. 

It’s essential to note that the company hasn't promised dividends in the past. Before deciding to invest, keep an eye on updates and make sure to do your research.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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