Shlokka Dyes Makes Flat Debut on BSE SME Platform
Shlokka Dyes, a manufacturer of reactive dyes and pigments, debuted on the BSE SME platform at its issue price of ₹91 per share. The IPO raised ₹57.79 crore with an overall subscription rate of 1.12 times. The company, incorporated in 2021, operates a facility in Gujarat with an annual production capacity of 9,000 metric tonnes. Shlokka Dyes reported significant financial growth with FY 2022 revenue of ₹103.45 crore (68% growth) and profit after tax of ₹10.01 crore (100% growth). IPO proceeds will be used for new machinery, debt repayment, and working capital. Post-listing, promoters retain a 71.3% stake in the company.
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Shlokka Dyes, a manufacturer of reactive dyes and pigments, made its debut on the BSE SME platform, listing at its issue price of ₹91 per share. The initial public offering (IPO), which raised ₹57.79 crore, saw a lukewarm response from investors during its 11-day subscription period.
Subscription Details
The IPO subscription details reveal a mixed response from different investor categories:
| Investor Category | Subscription Rate |
|---|---|
| Overall | 1.12 times |
| Retail Investors | 0.65 times |
| QIBs | 1.02 times |
Company Overview
Shlokka Dyes, incorporated in 2021, specializes in manufacturing reactive dyes and pigments for the textile, leather, and paper industries. The company operates a facility in Gujarat with an annual production capacity of 9,000 metric tonnes.
Financial Performance
The company has shown significant growth in its financial performance:
| Metric | FY 2022 | Growth Rate |
|---|---|---|
| Revenue | 103.45 | 68% |
| Profit After Tax | 10.01 | 100% |
| Return on Equity (ROE) | 36.80 | - |
| Debt-to-Equity Ratio | 1.02 | - |
Note: Revenue and Profit After Tax figures are in ₹ crore
IPO Proceeds Allocation
The funds raised from the IPO will be utilized as follows:
| Purpose | Amount (in ₹ crore) |
|---|---|
| New Machinery | 6.13 |
| Debt Repayment | 11.50 |
| Working Capital | 28.00 |
Post-Listing Scenario
Following the listing, the promoters will retain a 71.3% stake in the company.
Market Expectations
The grey market premium of 0% prior to listing indicated flat market expectations for Shlokka Dyes' shares. This sentiment was reflected in the stock's debut at its issue price.
The lukewarm response to Shlokka Dyes' IPO and its flat listing highlight the cautious approach of investors towards new offerings in the SME segment. While the company has demonstrated strong financial growth, the muted subscription rates, particularly from retail investors, suggest that market participants may be adopting a wait-and-watch approach.
As Shlokka Dyes begins its journey as a listed entity, investors will likely keep a close eye on its ability to maintain its growth trajectory and effectively utilize the funds raised through the IPO. The company's performance in the coming quarters will be crucial in determining investor sentiment and the stock's performance on the BSE SME platform.
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