Mayank Cattle Food Limited IPO

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Business Operations and Expansion

This company specializes in the manufacturing of Maize Oil and Maize Cake, with a production process that begins with the procurement of Maize Germ. This raw material is then processed using advanced mechanical expelling techniques, leading to the production of both Maize Oil and Maize Cake.

Significantly, this company has demonstrated a commitment to growth and expansion. Over recent years, they have increased their production capacity substantially:

  • Maize Oil: Expanded from 14,310 MT to 22,896 MT per annum.
  • Maize Cake: Increased from 28,620 MT to 45,792 MT per annum.

Infrastructure Advantages

The manufacturing facility, offers several strategic advantages:

  • Accessibility: Situated on a major highway, ensuring efficient transport and supply chain management.
  • Infrastructure: Access to essential amenities like electricity, water, communication, and banking facilities.
  • Environment-friendly Initiatives: Incorporation of a 150kva solar power plant for captive energy consumption, highlighting their commitment to sustainable practices.

Market Presence

Their products have a diversified customer base primarily in Gujarat, Delhi, and Maharashtra, marketed through various channels, including agents, brokers, and direct consumer sales.

Product Portfolio

  1. Maize Oil (Non-edible): An unrefined oil extracted from Maize germ, primarily used by refining companies to produce edible Maize Oil. This refined oil is notable for its high smoke point, making it ideal for frying, and is also used in margarines and various industrial applications.
  2. Maize Cake (Cattle Feed): A by-product of Maize Oil extraction, rich in fats and oils, and used as a nutritious cattle feed. It offers several benefits like increased milk fat percentage, energy provision, enhanced animal health and disease resistance, and aids in early pregnancy of livestock.

Quality Assurance and Continuous Improvement

The company maintains a strong focus on product quality, with a skilled workforce and modern machinery ensuring high standards. Since inception, there has been a continuous effort to improve product quality to better serve clients.

Conclusion

The company represents a robust and growing entity in the agro-industrial sector, leveraging strategic location, continuous capacity expansion, and strong leadership to enhance its market presence. The commitment to quality, sustainable practices, and a diverse product portfolio positions the company favorably for future growth and success in the industry.

Objects of the Mayank Cattle Food Limited IPO:

The Objects of the Issue are: i. Funding Capital Expenditure towards the purchase of additional plant and machinery ii. To meet the Working Capital Requirements iii. To meet the Issue Expenses iv. General Corporate Purposes
DRHP of Mayank Cattle Food Limited IPO
RHP of Mayank Cattle Food Limited IPO

Mayank Cattle Food Limited IPO Details:

Open Date: Jan 29 2024
Close Date: Jan 31 2024
Total Shares: 1,800,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 19.44 Cr.
Lot Size: 1200 Shares
Issue Price: ₹ 108 Per Equity Share
Listing At: BSE SME
Listing Date: Feb 05 2024

Promoters And Management:

Bharatkumar Popatlal Vachhani, aged about 59 years, is the Managing Director of the Company. He has been on the board of the company since inception. He holds a Bachelor's degree in Commerce from The Maharaja Sayajirao University of Baroda. Possessing a vast experience spanning over three decades in the cattle food manufacturing industry, agri products, and commodity exports, he plays a crucial role in spearheading the strategic initiatives of the company. Under the leadership of Bharatkumar Popatlal Vachhani, the invigorated growth story of Mayank Cattle Food Limited came to life. Ajay Popatlal Vachhani, aged about 57 years, is the Wholetime Director of the Company. He has been on the board of the company since inception. He holds a Bachelor of Commerce from H L College of Commerce, Ahmedabad. With a pivotal role in shaping the company's strategy and driving its growth plans to sustain industry leadership, he has been an integral part of the organization for over two decades, serving in various capacities. He oversees overall management, finance & accounting, as well as investments and acquisitions, ensuring the company's continued success and advancement Ajay Popatlal Vachhani's visionary leadership has been the driving force behind the successful realization of the company's vision, spearheading its monumental growth right from the outset. With his guidance, the company has achieved accelerated growth and fostered a culture of utmost customer satisfaction. Tanmai Ajaybhai Vachhani, aged about 25 years, is the Wholetime Director of the Company. He has been on the board of the company since July 13, 2022. He has completed Cambridge, International General Certificate of Secondary Education (Cambridge IGCSE) program from The Galaxy School in the year 2013. He holds a certificate of participating in the programme – “Marketing Luxury: Understanding the Complexities of a New World of Business (Online)” from Indian Institute of Management, Ahmedabad. He has expertise in the field of marketing.

Financials of Mayank Cattle Food Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
4M-FY24
Revenue from Operations 18,632 32,263 30,918 7,508
Other Income 21 37 40 19
Total Revenue 18,653 32,300 30,958 7,527
Cost of Materials Consumed 16,783 30,396 29,425 6,289
Purchase of Stock-in-trade 372 0 0 0
Changes in inventories 164 -86 -581 522
Employees Benefit Expenses 200 304 309 107
Other Expenses 717 1,217 1,131 323
EBITDA 417 469 674 285
Depreciation & Amortisation 119 119 171 80
Finance cost 200 236 325 102
EBIT 298 350 502 206
OPM (%) 2.24% 1.45% 2.18% 3.79%
PBT 97 114 177 103
Tax 25 34 46 46
PAT 72 80 131 57
NPM (%) 0.38% 0.25% 0.42% 0.76%
No.of Shares 54.00 54.00 54.00 54.00
EPS 1.32 1.48 2.43 1.06

Comparison With Peers:

Note: - There are no listed companies in India that is into the similar line of business of the Company.

Recommendation on Mayank Cattle Food Limited IPO:

Research On Mayank Cattle IPO

Lead Manager of Mayank Cattle Food Limited IPO:

  1. Finshore Management Services Limited

Registrar of Mayank Cattle Food Limited IPO:

  1. Cameo Corporate Services Limited

Company Address:

Mayank Cattle Food Limited R. S. No. 162, Rajkot Jamnagar Highway Near Khandheri Stadium, Vill. Naranka, Tal. Paddha Rajkot, Gujarat, 360110, Phone: +91 90333 33123 Email: cs@mayankcattlefood.com Website: https://www.mayankcattlefood.com/

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