Shyam Dhani Industries IPO sees 59 times subscription on day 1, GMP spikes over 65%

Shyam Dhani Industries IPO News

Shyam Dhani Industries has attracted massive demand for its initial public offering which was subscribed 58.84 times on December 22, the first day of bidding, however, Sundrex Oil Company, EPW India, and Dachepalli Publishers public issues were undersubscribed.

All the four initial public offerings (IPO) will remain open for bidding till December 24.

The demand for spices maker and exporter Shyam Dhani Industries' public issue was seen from across investors' category. Investors have picked up 23.17 crore equity shares of the spices maker and exporter Shyam Dhani Industries against the offer size of 39.38 lakh shares via 45,508 applications.

The IPO shares attracted more than 65 percent premium in the grey market, the market observers said. The grey market is an unofficial market for trading in IPO shares till the listing on the bourses.

The company approached capital markets to raise Rs 38 crore via IPO of 54.98 lakh shares at the upper end of price band of Rs 65-70 per share.

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Rajasthan-based Shyam Dhani will utilise IPO proceeds for its incremental working capital requirements, repayment of borrowings, and brand creation and marketing expenses. Further, the funds will also be spent for purchase of new additional machineries, purchase and installation of solar rooftop plant at the existing manufacturing unit, and general corporate purposes.

The company manufactures 164 type of spices such as ground spices, blend spices and whole spices under the SHYAM brand. It also trades in grocery products.

Meanwhile, the public issue of industrial and automotive lubricants manufacturer Sundrex Oil Company was subscribed 79 percent with investors bidding 29.63 lakh shares against the offer size of 37.5 lakh shares via 688 applications.

IT electronics refurbishing company EPW India's initial share sale saw 19 percent subscription on Monday as investors applied for 4.54 lakh shares against the offer size of 23.47 lakh shares via 73 applications, while 40 percent of the public issue of Dachepalli Publishers was subscribed.