Shivashrit Foods Makes Modest Debut on NSE SME Platform
Shivashrit Foods, a potato flakes manufacturer, listed on the NSE SME platform after raising Rs 70.03 crore through its IPO. The offering was subscribed 2.89 times overall, with non-institutional investors showing stronger interest at 5.16 times subscription. The company plans to use the funds for expansion, working capital, and general corporate purposes. Despite recent financial growth, the IPO received a modest 1% premium in the grey market, indicating cautious investor sentiment.
*this image is generated using AI for illustrative purposes only.
Shivashrit Foods, a prominent potato flakes manufacturer, made its debut on the National Stock Exchange's Small and Medium Enterprises (NSE SME) platform today. The initial public offering (IPO), which raised Rs 70.03 crore, saw a tepid response in the grey market, with shares trading at a modest 1% premium.
IPO Details and Subscription
The company priced its IPO at Rs 142 per share, attracting an overall subscription of 2.89 times. The offering saw varied interest across investor categories:
- Retail investors subscribed 2.65 times their allotted quota
- Non-institutional investors showed stronger interest, bidding 5.16 times their portion
Prior to the public offering, Shivashrit Foods successfully raised Rs 19.92 crore from anchor investors, indicating some institutional interest in the company's prospects.
Utilization of IPO Proceeds
The funds raised through the IPO are earmarked for several key areas:
- Rs 26.30 crore for capital expenditure expansion
- Rs 19.00 crore to bolster working capital
- The remaining amount for general corporate purposes
These allocations suggest the company's focus on growth and operational efficiency.
Company Performance and Market Presence
Shivashrit Foods has demonstrated strong financial performance in recent times:
- Revenue growth of 36% to Rs 105.85 crore
- Profit after tax increased by 4% to Rs 12.06 crore
The company operates under three brands: Shivashrit, Shreeaahar, and Flaker's, catering to both domestic and international markets. Shivashrit Foods has established a global presence, exporting its products to several countries including the USA, Brazil, Israel, Mexico, and Indonesia.
Market Response and Future Outlook
The muted grey market premium of 1% suggests cautious investor sentiment towards the IPO. This modest premium indicates that market participants are taking a measured approach to valuing the company's shares post-listing.
As Shivashrit Foods begins its journey as a publicly-traded entity on the NSE SME platform, investors and market watchers will be keen to observe how the company leverages its newly acquired capital to drive growth and expand its market presence both domestically and internationally.
16
