Shyam Dhani IPO closes with over 918x subscription, GMP rises to 100% ahead of listing

IPO News

Spices maker Shyam Dhani Industries’ initial public offering (IPO) witnessed a stellar response from investors, closing with a massive 918.12 times subscription on December 24, the final day of bidding. Meanwhile, the public issues of Sundrex Oil Company, EPW India, and Dachepalli Publishers also managed to sail through on the last day.

All four companies will finalise IPO share allotments by December 26, and their shares are scheduled to be available for trading on the bourses from December 30.

Investors bid for 361.55 crore equity shares in the Shyam Dhani Industries IPO over the three-day period from December 22 to 24, against an offer size of 39.38 lakh shares, through 6.22 lakh applications. This translated into demand worth Rs 25,308.9 crore, significantly higher than the company’s valuation of Rs 144.6 crore at Rs 70 per share.

Demand remained robust across all investor categories, with non-institutional investors (NIIs) and retail investors subscribing 1,613 times and 1,138 times their respective quotas. The portion reserved for qualified institutional buyers (QIBs) was subscribed 256.2 times.

The grey market premium (GMP) also increased in line with rising subscription demand and was trading at a 100 percent premium over the upper end of the price band, compared with 88 percent in the previous session, market observers said. The grey market is an unofficial market where IPO shares are traded before listing.

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The Rajasthan-based spices manufacturer is raising Rs 38.48 crore through its maiden public issue of 54.98 lakh shares at the upper end of the price band of Rs 65–70 per share.

The IPO proceeds will be utilised for working capital requirements, brand creation and marketing expenses, the purchase of new machinery to be installed at the existing manufacturing unit, and the purchase and installation of a solar rooftop plant.

Additionally, the company will use a portion of the IPO funds to reduce certain debts, while the remaining amount will be deployed for general corporate purposes.

Meanwhile, the Rs 32-crore public issue of Sundrex Oil Company, an industrial and automotive lubricants manufacturer, was subscribed 1.51 times, with investors bidding for 56.46 lakh shares against an offer size of 37.5 lakh shares.

The Rs 32-crore initial public offering of IT electronics refurbishing firm EPW India recorded the lowest subscription among the four at 1.29 times. Investors applied for 30.36 lakh shares against an IPO size of 23.47 lakh shares.

The Rs 40-crore IPO of Dachepalli Publishers, an educational textbooks and academic materials publisher, attracted 1.9 times subscription over three days. Investors bid for 53.83 lakh shares against an offer size of 28.34 lakh shares through 1,231 applications. Non-institutional investors, retail investors, and qualified institutional buyers subscribed 2.51 times, 1.9 times, and 1.29 times their respective portions.

Meanwhile, four out of five public issues closing on December 26 were also fully subscribed by the second day of bidding.

Apollo Techno Industries’ maiden public issue was subscribed 6.11 times, Dhara Rail Projects 4.71 times, Bai-Kakaji Polymers 1.43 times, and Admach Systems 1.21 times. However, the public issue of Nanta Tech remained undersubscribed at 36 percent on Wednesday.