Strong Investor Response to Mother Nutri Foods IPO
The initial public offering of Mother Nutri Foods has generated significant interest from investors since opening for subscription on November 26. According to the latest exchange data, the IPO witnessed a healthy response with the issue being subscribed 1.34 times by the end of the second day.
Investors bid for approximately 29.43 lakh shares against the total offer of 22 lakh shares, demonstrating solid market confidence in the peanut butter manufacturer's growth prospects.
Subscription Breakdown Across Investor Categories
The subscription pattern reveals interesting trends across different investor categories. The Non-Institutional Investors (NII) segment showed the strongest response, being subscribed 2.54 times, indicating high interest from high-net-worth individuals and corporate investors.
Retail investors maintained steady participation with their segment being booked at 1.04 times, while Qualified Institutional Buyers (QIBs) approached near-full subscription at 0.95 times.
IPO Details and Financial Structure
The ₹39.59 crore IPO comprises a combination of fresh issue and offer for sale components. The company is issuing 0.27 crore fresh shares aggregating ₹31.67 crore, while an offer for sale of 0.07 crore shares totals ₹7.92 crore.
The price band has been fixed at ₹111 to ₹117 per share, with a lot size of 2,400 shares. This translates to a minimum investment requirement of ₹2,80,800 for retail investors looking to participate in this SME IPO.
Utilization of Proceeds and Expansion Plans
The company has outlined clear plans for utilizing the capital raised through this public offering. A significant portion of the proceeds will be allocated toward establishing a new manufacturing facility at Mahuva in Bhavnagar, Gujarat.
The remaining funds will be used for general corporate purposes, supporting the company's growth trajectory and operational requirements as it expands its footprint in the competitive food manufacturing sector.
IPO Timeline and Key Dates
Investors can expect the allotment of shares to be finalized on Monday, December 01. The company will initiate refunds for unsuccessful applicants on Tuesday, December 02, with successful allottees receiving shares in their demat accounts on the same day following the refund process.
The tentative listing date on the BSE SME platform is set for Wednesday, December 03, marking an important milestone for the company's public market journey.
Market Sentiment and Grey Market Premium
Market sources indicate that the grey market premium (GMP) for Mother Nutri Foods is currently nil. This suggests that the stock might debut on the exchanges at the IPO price or potentially at a discount, providing investors with an interesting entry point opportunity.
About Mother Nutri Foods Business
Mother Nutri Foods operates as a B2B peanut butter manufacturer with a diverse product portfolio featuring multiple flavors and variants. The company sells its products under its own brand in international markets including Libya, Dubai, and Japan.
Additionally, the company provides private labelling services for both domestic and international clients across more than 20 countries. Under this arrangement, Mother Nutri Foods handles production, supply, and quality control while clients market and sell the products under their own brand names.
Key Professionals Managing the IPO
The public offering is being managed by Marwadi Chandarana Intermediaries Brokers Pvt. Ltd. as the book running lead manager. Bigshare Services Pvt. Ltd. serves as the registrar for the issue, while Mansi Share & Stock Broking Pvt. Ltd. acts as the market maker for the company.
The successful subscription response reflects investor confidence in Mother Nutri Foods' business model and growth potential in the specialized food manufacturing sector.
