Shri Ahimsa Naturals has launched its IPO for investors today, March 25, and it’s set to wrap up on March 27. This eagerly awaited public offering has established a price range between ₹113 and ₹119 per equity share, which has a face value of ₹10. Investors can place bids for a minimum of 1,200 shares, with additional bids also in multiples of 1,200 shares.
Company Overview and Product Offerings
Founded in 1990, Shri Ahimsa Naturals Limited specializes in the extraction and production of essential ingredients such as Caffeine Anhydrous, Green Coffee Bean Extracts, and Crude Caffeine. Additionally, the company trades a variety of herbal extracts. These products are highly sought after in multiple sectors, including food and beverage, nutraceuticals, cosmetics, and pharmaceuticals, thanks to their numerous health benefits.
Some of the key offerings from Shri Ahimsa Naturals include:
- Natural Caffeine
- Green Coffee Bean Extract
The company exports its products to several countries, including the USA, Germany, South Korea, the UK, and Thailand. Notably, for the financial year ending September 30, 2024, the export revenue from these products reached impressive figures:
- ₹3,530.91 lakhs for Fiscal 2023
- ₹7,463.71 lakhs for Fiscal 2023
- ₹9,988.01 lakhs for Fiscal 2023
- ₹5,633.50 lakhs for Fiscal 2022
The manufacturing hub of Shri Ahimsa Naturals is located in Jaipur, Rajasthan.
IPO Subscription Status
As of the first day of bidding, the subscription status for the Shri Ahimsa Naturals IPO stands at 36%. The retail segment has seen a healthier uptake at 46%, while the Non-Institutional Investors (NII) portion has garnered only 6% interest. The Qualified Institutional Buyers (QIB) segment has yet to see any subscriptions.
- Bids received: 14,98,800 shares
- Shares on offer: 41,36,400 shares
IPO Details and Financial Proceeds
The Shri Ahimsa Naturals IPO comprises a fresh issue of shares worth up to ₹50.02 crore, alongside an offer for sale (OFS) of 19,99,200 equity shares, all with a face value of ₹10. The net proceeds from this IPO are earmarked for several purposes:
- Investment in its wholly-owned subsidiary, Shri Ahimsa Healthcare Private Limited (SAHPL), aimed at developing a manufacturing facility in Sawarda, Jaipur, Rajasthan.
- General corporate expenses.
Srujan Alpha Capital Advisors LLP is serving as the book-running lead manager for this IPO, while Cameo Corporate Services Limited is acting as the registrar. Choice Equity Broking Private Limited is designated as the market maker for the IPO.
Grey Market Premium Insights
Today, the Grey Market Premium (GMP) for Shri Ahimsa Naturals is reported at +10, indicating that shares are trading at a premium of ₹10 in the grey market, as per investorgain.com. Considering the upper limit of the IPO price band, this suggests an estimated listing price of approximately ₹129 per share, representing an 8.40% increase over the IPO price of ₹119.
The upward trend in GMP over the last week implies a positive outlook for the upcoming listing, reflecting investor confidence. The minimum GMP recorded was ₹0.00, while the maximum reached ₹10.00.
For those interested in learning more about market dynamics, keep an eye on the latest updates regarding upcoming IPOs, including the four SME IPOs and five listings slated for next week.
