MRP Agro IPO Review 2021: With the Indian markets at an all-time high with the BSE crossing a market capitalization of Rs. 200 lakh crore we review another IPO set to be launched next week.
In this article, we cover the MRP Agro Ltd. Review and look into important IPO information and find out the possible prospects of the company. The IPO opens on 8th Feb 2021 and closes on Feb 10, 2021. Let’s get started.
MRP Agro IPO Review – About the Company
The Company was incorporated on April 13, 2018, as MRP Agro Private Limited. The name was later changed to “MRP Agro Limited” through a special resolution passed by the Shareholders in an Extra-Ordinary General Meeting held on August 27, 2020. The company is primarily engaged in trading and import/export of food grains, fly-ash, and coal products.
The business follows B2B (Business to Business) Model, in which it purchases products from the domestic market in bulk through auctions and sells it to wholesalers. Over the last few years, the company has built a strong market for the purchase of such products domestically and an extensive distribution network for supply to its consumers.
The company has a local mandi license to purchase food grains from the local market of Tikamgarh, Madhya Pradesh. The company is also a registered dealer with the Department of Mines & Geology, Government of Jharkhand to buy coal. Sales and marketing play a key role in ensuring that the corporate and product brands communicate and reach out to the customers in the proper way.
Due to this, the company ensures compliance with quality standards. The company also regularly communicates with the consumer on various platforms to increase awareness of our products.
( Total Assets – in lakhs)
Financials: The company has produced great profits in the first half of FY21 in comparison to F19 and FY20.
The company also issued rights shares at a price of Rs. 25 and Rs. 26.64 between October 2019 and May 2020. It has also issued bonus shares in the ratio of 4 for 10 in September 2020.
MRP Agro IPO Review – Key IPO Information
Beeline Broking Ltd. is the lead manager of the issue. Skyline Financial Services Pvt. Ltd. is the registrar of the issue and Nikunj Stock Brokers Ltd. is acting as a Market Maker.
Mr. Manish Kumar Jain, Mrs. Raksha Jain, and Manish Kumar Jain HUF are the company promoters. They bring with them extensive industry experience. Mr. Manish Kumar Jain the Chairman and Managing Director of the company has 10 years of experience in the trading industry. Together they have been instrumental towards the company.
|IPO Size||₹3.24 Cr|
|Fresh Issue||₹3.24 Cr|
|Offer For Sale(OFS)||-|
|Opening Date||Feb 8, 2021|
|Closing Date||Feb 10, 2021|
|Face Value||₹10 per equity share|
|Price Band||₹40 per equity share|
|Minimum Lot Size||1 Lot (3000 shares - Rs. 120,000)|
|Maximum Lot Size||1 Lot (3000 shares - Rs. 120,000)|
Post issue, MAL’s current paid-up equity capital of Rs. 2.17 cr. will stand enhanced to Rs. 2.98 cr. With this IPO, the company is looking for a market cap of Rs. 11.92 cr.
MRP Agro IPO Review – Purpose of the IPO
The key objects of the MRP Agro IPO are as follows:
- To meet working capital requirements (Rs. 2.50 cr.).
- To meet general corporate purposes (Rs. 0.53 cr.).
- To meet the issue expenditure. (Rs. 0.21cr.).
The MRP Agro IPO is a rare SME IPO in recent times. Despite SMEs’ having great growth prospects and the ability to scale investors must keep in mind that the market includes big players and is extremely competitive with the company still being in its nascent stages.
That’s all for this post. Do let us know what do you think of MRP Agro IPO Review. Are you planning to apply for this IPO or not? Comment below. Cheers!!
Aron, Bachelors in Commerce from Mangalore University, entered the world of Equity research to explore his interests in financial markets. Outside of work, you can catch him binging on a show, supporting RCB, and dreaming of visiting Kasol soon. He also believes that eating kid’s ice-cream is the best way to teach them taxes.