Shreeji Global FMCG Makes Flat Debut on NSE SME Platform
Shreeji Global FMCG, a Rajkot-based manufacturer of agri and food products, debuted on the NSE SME platform at par with its issue price of Rs 125 per share. The IPO raised Rs 85 crore with a 3.27 times overall subscription. The company, which markets products under the 'SHETHJI' brand, reported a revenue of Rs 650.85 crore (11% YoY growth) and net profit of Rs 12.15 crore (122% YoY growth). IPO proceeds will be used for expanding manufacturing facilities, investing in machinery, setting up cold storage, installing solar power systems, and meeting working capital needs.
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Shreeji Global FMCG, a Rajkot-based manufacturer of agri and food products, made its debut on the NSE SME platform today. The company's shares were listed at par with the issue price, reflecting the zero grey market premium observed prior to the listing.
IPO Details
| Particulars | Details |
|---|---|
| Issue Size | Rs 85.00 crore |
| Price Band | Rs 120-125 per share |
| Allotment Price | Rs 125.00 per share |
| Overall Subscription | 3.27 times |
| Anchor Investment | Rs 14.53 crore |
Despite the healthy subscription numbers, the grey market premium fell to zero, indicating expectations of a flat listing, which materialized on the debut day.
Company Overview
Shreeji Global FMCG manufactures and markets agri and food products under the 'SHETHJI' brand. Their product portfolio includes:
- Spices
- Grains
- Pulses
Financial Performance
The company has shown strong financial growth:
| Metric | Amount | YoY Growth |
|---|---|---|
| Revenue | Rs 650.85 crore | 11% ↑ |
| Net Profit | Rs 12.15 crore | 122% ↑ |
IPO Proceeds Utilization
The funds raised from the IPO are earmarked for various expansion and improvement initiatives:
- Establishment of new manufacturing facilities
- Investment in plant and machinery
- Setting up cold storage facilities
- Installation of solar power systems
- Working capital requirements
The flat listing of Shreeji Global FMCG on the NSE SME platform underscores the current cautious sentiment in the IPO market, particularly in the SME segment. While the company's strong financial growth and diverse product portfolio present potential for future growth, investors seem to be adopting a wait-and-watch approach.
As the company begins its journey as a listed entity, its performance in the coming quarters will be crucial in determining investor interest and stock price movement. The utilization of IPO proceeds for expansion and infrastructure development could play a significant role in the company's growth trajectory.
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