Snehaa Organics, a Hyderabad-based solvent recovery and recycling company, marked its entry into the public markets with a listing on the NSE SME platform. The company's initial public offering (IPO) garnered significant investor interest, reflecting positively on its market debut.

IPO Details and Subscription

The Rs 32.68 crore IPO was priced at Rs 122 per share and comprised entirely of a fresh issue of 26.79 lakh shares. The offering witnessed robust demand across investor categories:

• Overall subscription: 27.75 times
• Qualified Institutional Buyers (QIB) segment: 42.19 times
• Retail portion: 37.75 times
• Non-Institutional Investors (NII) category: 16.23 times

Utilization of IPO Proceeds

The funds raised through the IPO will be allocated as follows:

• Working capital requirements: Rs 23.94 crore
• Repayment of borrowings: Rs 3.50 crore
• General corporate purposes: Remaining amount

Company Overview

Snehaa Organics operates in the solvent recovery industry, specializing in distilling and purifying spent solvents for reuse. The company also engages in direct solvent trading from its 3,300 sq. ft. facility in Hyderabad.

Financial Performance

The company has demonstrated strong financial growth:

*All figures in Rs crore

Market Capitalization and GMP

Post-IPO, Snehaa Organics' market capitalization stands at approximately Rs 124 crore. The Grey Market Premium (GMP) ahead of the debut was hovering around 2%, indicating positive sentiment among investors.

The strong subscription numbers across investor categories, particularly in the QIB and retail segments, suggest confidence in Snehaa Organics' business model and growth prospects. The company's focus on solvent recovery and recycling aligns with growing environmental concerns and the push for sustainable industrial practices.

As Snehaa Organics begins its journey as a publicly traded company, investors and market watchers will be keen to observe how it leverages the raised capital to fuel its growth strategies and strengthen its position in the solvent recovery and recycling sector.

Snehaa Organics, a Hyderabad-based solvent recovery and recycling company, is set to conclude its Initial Public Offering (IPO) process with the allotment of shares expected to be finalized today. The Rs 33.00 crore IPO, which ran from August 29 to September 2, has garnered significant attention from investors across various categories.

IPO Details and Subscription Status

The IPO, priced in the band of Rs 115.00-Rs 122.00 per share, consisted of 26.79 lakh fresh shares. The issue witnessed a robust response from investors, with an overall subscription rate of 28 times. Here's a breakdown of the subscription rates across different investor categories:

Grey Market Premium and Expected Listing

As the allotment process concludes, the Grey Market Premium (GMP) for Snehaa Organics stands at Rs 3.00 per share. This suggests a potential listing price of around Rs 125.00, indicating a modest premium over the issue price.

Key Dates for Investors

• September 4: Refund process begins for unsuccessful applicants
• September 5: Credit of shares to successful applicants
• September 5: Expected listing on NSE SME platform

Company Performance

Snehaa Organics has shown promising financial results in the recent fiscal year:

• Revenue: Rs 26.29 crore (10% year-on-year growth)
• Net Profit: Rs 7.34 crore (more than doubled compared to the previous year)

Utilization of IPO Proceeds

The company plans to use the funds raised from the IPO for:

1. Working capital requirements
2. Loan repayment
3. General corporate purposes

Investors who have applied for shares in the Snehaa Organics IPO should keep an eye on their application status as the allotment process concludes today. With the strong subscription rates and positive Grey Market Premium, the upcoming listing on the NSE SME platform is anticipated with interest by market participants.