Mother Nutri Foods IPO: Explore GMP, Price Band, and Subscription Details

Mother Nutri Foods is set to launch its Rs 39.59 crore SME IPO, opening for subscription on November 26 and continuing through November 28. This Gujarat-based company specializes in B2B peanut butter and is offering both fresh shares and an offer for sale, with the grey market premium currently stable at 0%. The IPO is scheduled to list on BSE SME, with a tentative listing date of December 3.

Issue Structure

The issue comprises a fresh capital raise of Rs 31.67 crore and an offer for sale amounting to Rs 7.92 crore. The price band has been established between Rs 111 and Rs 117 per share. For retail investors, a minimum application of 2,400 shares is required at the upper price range. Notably, the company has already secured Rs 10.99 crore from anchor investors ahead of the offering, on November 25.

Subscription Breakup

A total of 33.84 lakh shares are available for subscription, with allocations of 46.38% reserved for Qualified Institutional Buyers (QIBs), 13.94% for Non-Institutional Investors (NIIs), and 32.48% designated for retail investors.

Business Overview

Founded in 2022, Mother Nutri Foods is active in the expanding B2B nut-based spreads market. The company offers over ten flavors and five variants of peanut butter under the “Spread and Eat” brand, primarily targeting international markets such as Libya, Dubai, and Japan.

Additionally, Mother Nutri Foods engages in private-label manufacturing for significant global retailers, serving clients across the UK, Canada, South Africa, UAE, USA, Germany, and more. The company intends to allocate Rs 23.19 crore from the IPO proceeds to establish a new production facility at its current location and address general corporate needs.

Financials

In FY25, the company reported revenue of Rs 90.48 crore, with a profit after tax (PAT) of Rs 6.47 crore, indicating a 35% increase in profit compared to FY24. The EBITDA also saw improvement, reaching Rs 10.22 crore.

Listing Outlook

With a grey market premium of 0%, market sentiment towards the issue remains cautious ahead of its launch. While the company’s export-driven model and private-label partnerships present scale opportunities, the SME nature of the listing and its limited operational history may impact initial perceptions.

(Disclaimer: The insights and opinions expressed by experts are theirs alone and do not reflect the views of Economic Times.)