Rajasthan-based spices maker Shyam Dhani Industries has continued to witness strong investor demand on the second day of its initial public offering (IPO) on December 23. Grey market trading also reflected bullish sentiment, with premiums rising significantly.
The IPO, which opened on December 22, aims to raise Rs 38.48 crore through 54.98 lakh fresh shares, priced at Rs 65–70 per share. So far, the company has received bids for 94.91 crore shares, representing 241.02 times subscription of the offer size via 1.85 lakh applications.
Non-institutional and retail investors led the subscription, bidding 372.82 times and 352.8 times their respective quotas, while qualified institutional buyers (QIBs) subscribed 10.69 times.
The strong demand is also reflected in the grey market, where shares traded at an 88% premium, up from 65% observed on the previous day.
Shyam Dhani Industries manufactures a variety of spices, including ground, blended, and whole spices under the SHYAM brand, and also trades in grocery products, herbs, and seasonings. The company had earlier raised Rs 10.92 crore from seven anchor investors at the upper price band on December 19, a day before the IPO opened to the public. Additionally, Rs 2 crore was raised through a pre-IPO placement of 2.86 lakh shares, reducing the final IPO size from 57.84 lakh shares to 54.98 lakh shares.
The company plans to utilise the IPO proceeds for working capital requirements, repayment of borrowings, brand creation and marketing, acquisition of new machinery, installation of a solar rooftop plant, and other general corporate purposes.
Holani Consultants is acting as the merchant banker for the Shyam Dhani Industries IPO.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Readers should consult a qualified financial professional before making any investment decisions.
