Sheel Biotech IPO Sees Strong Demand Ahead of NSE SME Listing
Sheel Biotech's Rs 34 crore IPO was oversubscribed 15.97 times, with HNIs leading at 25.92 times. The agri-biotech company's shares are trading at a 16% premium in the grey market. Sheel Biotech reported revenue of Rs 102.27 crore and PAT of Rs 10.64 crore, showing growth of 11% and 1.62% respectively. The IPO, priced at Rs 63 per share, aims to fund capital expenditure and working capital needs.
*this image is generated using AI for illustrative purposes only.
Sheel Biotech, an agri-biotech company specializing in tissue culture and greenhouse solutions, is set to make its debut on the NSE SME platform on October 8. The company's Initial Public Offering (IPO) has garnered significant attention from investors across various categories.
IPO Subscription Details
The Rs 34 crore IPO witnessed robust demand, with an overall subscription of 15.97 times. Here's a breakdown of the subscription rates across different investor categories:
| Investor Category | Subscription Rate |
|---|---|
| Qualified Institutional Buyers (QIB) | 19.73 |
| High Net Worth Individuals (HNIs) | 25.92 |
| Retail Investors | 9.56 |
Grey Market Premium
The strong investor interest is further reflected in the grey market, where Sheel Biotech shares are trading at a premium of Rs 10 per share. This represents a 16% increase over the issue price of Rs 63.
Financial Performance
Sheel Biotech has demonstrated solid financial performance in recent times:
| Metric | Value | Year-on-Year Growth |
|---|---|---|
| Revenue | Rs 102.27 crore | 11.00% |
| Profit After Tax | Rs 10.64 crore | 1.62% |
The company's profit after tax showed a slight increase from Rs 10.47 crore in the previous year.
Company Overview
Sheel Biotech operates in the biotechnology, horticulture, and sustainable agriculture sectors. The company's primary focus includes:
- Production of disease-free planting materials
- Implementation of greenhouse projects
IPO Details
- Issue Size: Rs 34 crore
- Issue Price: Rs 63 per share
- Anchor Book Participation: Rs 9.6 crore raised
The proceeds from the IPO will be utilized to fund capital expenditure and meet working capital requirements.
Conclusion
The strong subscription rates across investor categories and the positive grey market premium indicate significant investor interest in Sheel Biotech's IPO. As the company prepares for its NSE SME debut, market participants will be keenly watching its performance in the secondary market.
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