Stellar Listing | Srivari Spices and Foods opens 142% higher on debut

Srivari Spices and Foods hits century on debut

Telangana-based spices & flour manufacturer Srivari Spices and Foods has started off the first-day first trade on a stellar note despite a correction in the equity markets on August 18, backed by robust IPO subscription numbers and healthy financial performance though it has higher borrowings.

The stock opened the day at Rs 101.50 on the NSE SME, rising 141.7 percent over the issue price of Rs 42, which was also its day's low, and climbed up to Rs 106.55 in the morning.

It was quoting higher by Rs 148.81 percent at Rs 104.45, at 11:37 hours IST, while the trading volume in the counter was 11.97 lakh shares.

The listing price was way ahead of its premium quoted in the grey market, an unofficial market for trading in IPO shares till the listing. It was available at around 60 percent premium in the grey market, analysts said on anonymity.

The company with operations majorly in and around Telangana and Andhra Pradesh has raised Rs 9 crore via initial public offering which was subscribed 418.5 times during August 7-9.

The offer comprised only a fresh issue of 21.42 lakh equity shares and was a book-built issue. The price band for the issue was Rs 40-42 per share.

Srivari Spices, which operates two business models (direct-to-customer and business-to-business), will utilise fresh issue proceeds mainly for its working capital requirements (Rs 5.92 crore), besides general corporate purposes.

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The Neihaa Rathi and Rathi Narayan Das-promoted firm has clocked strong financial performance in the past years, with profit in FY23 growing 329 percent on-year to Rs 3.13 crore and revenue increasing by 103 percent to Rs 35.8 crore compared to FY22.

The finance cost during the past financial year (FY23) jumped substantially to Rs 0.86 crore from Rs 0.11 crore in  the previous year, as borrowings, too, surged to Rs 12.83 crore at the end of March FY23, rising from Rs 2.77 crore in FY22.

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