Shri Ahimsa Naturals Makes a Splash with Impressive IPO Launch
Today marked a significant milestone for Shri Ahimsa Naturals, as the company’s shares made a stunning debut on the NSE SME platform. Opening at ₹140, the stock soared 17.6% above its issue price of ₹119, showcasing strong investor interest right from the start.
IPO Subscription and Performance
The Shri Ahimsa Naturals IPO opened for subscription on March 25 and concluded on March 27. With a fixed price band between ₹113 and ₹119 per share, the IPO has attracted considerable attention, achieving a remarkable subscription rate of 62.71 times by the end of its third day, according to data from Chittorgarh.com. Investors were able to bid for a minimum of 1,200 equity shares, with additional shares available in multiples of this amount.
Company Overview and Product Range
Founded in 1990, Shri Ahimsa Naturals specializes in the extraction and production of key ingredients such as Caffeine Anhydrous, Green Coffee Bean Extracts, and Crude Caffeine. The company also trades in a variety of herbal extracts, which are increasingly popular in the food and beverage, nutraceutical, cosmetics, and pharmaceutical sectors due to their numerous health benefits. Their diverse product lineup includes Natural Caffeine and Green Coffee Bean Extract.
Shri Ahimsa Naturals exports its high-quality products to several countries, including the USA, Germany, South Korea, UK, and Thailand. For the fiscal year ending September 30, 2024, the company reported significant export revenues amounting to ₹3,530.91 lakhs for fiscal year 2023, up from ₹5,633.50 lakhs in fiscal year 2022.
IPO Details and Fund Allocation
The IPO consists of a fresh issue of shares valued at up to ₹50.02 crore, alongside an offer for sale (OFS) of 1,999,200 equity shares by a promoter selling shareholder. The proceeds from this IPO will be allocated for various purposes, including investments in Shri Ahimsa Healthcare Private Limited, aimed at establishing a new manufacturing facility in Sawarda, Jaipur, Rajasthan, as well as for general corporate expenditures.
Market Insights and Grey Market Premium
As of today, the grey market premium (GMP) for Shri Ahimsa Naturals shares stands at +19.5, indicating strong market enthusiasm. This suggests that the shares are trading at a premium of ₹19.5 in the grey market, hinting at a projected listing price of approximately ₹138.5, which is 16.39% higher than the IPO price. Notably, the grey market has shown a consistent upward trend over the past 15 days, with the minimum GMP recorded at ₹0.00 and the maximum reaching ₹22.00, further reflecting investor confidence.
With the impressive debut and robust subscription figures, Shri Ahimsa Naturals is poised for a promising future in the stock market. As they continue to expand their footprint both domestically and internationally, the company remains a key player in the health and wellness sector.
