Shares of Mother Nutri Foods made a positive debut on the stock exchanges, listing at a premium on the BSE SME platform on Wednesday, December 3. The stock of the peanut butter manufacturer opened at ₹118.40 per share, marking a premium of 1.19% over its issue price of ₹117.
Strong Debut and Market Performance
The listing day saw robust investor interest, with the stock quickly climbing to hit its upper circuit limit. Soon after listing, the SME stock surged to ₹124.30 apiece, which represents its 5% upper price band for the day. This performance was notably better than market expectations, especially considering that the IPO had not seen significant activity in the grey market prior to listing.
Overwhelming Investor Response to the IPO
The initial public offering of Mother Nutri Foods, which was open for subscription from November 26 to November 28, received a strong response from investors across categories. The offer was subscribed 15.92 times overall by the close of the bidding period.
The breakdown of subscription data reveals enthusiastic participation:
- The retail investor portion was booked 11.31 times.
- The non-institutional investor (NII) segment saw massive demand, getting subscribed 34.41 times.
- The qualified institutional buyer (QIB) quota received 10.10 times bids.
In total, bids were received for 3,50,26,800 shares against the 22,00,800 shares on offer. The allotment was finalised on Monday, December 1, with shares credited to successful allottees' accounts on December 2.
IPO Details and Future Plans
The Mother Nutri Foods IPO was a mix of a fresh issue of shares and an offer for sale. The company aimed to raise ₹39.59 crore at the upper price band of ₹117. This comprised a fresh share sale worth ₹31.67 crore and an offer for sale of ₹7.92 crore. The lot size for the public offer was set at 1,200 shares.
The company plans to utilise the net proceeds from the fresh issue for setting up a new manufacturing facility in Bhavnagar, Gujarat. The remaining funds will be allocated for general corporate purposes.
Mother Nutri Foods operates as a B2B manufacturer of peanut butter, offering more than 10 flavours and 5 variants. It sells products under its own brand "Spread & Eat" and also engages in private labelling for both domestic and international clients. Its products are supplied to hypermarkets, supermarkets, and retail chains.
Disclaimer: This news article is for informational purposes only. The views and recommendations mentioned are not those of the publication. Investors are advised to consult certified experts before making any investment decisions, as market conditions are subject to change.
