Spices manufacturer Shyam Dhani Industries received an overwhelming response to its initial public offering, which closed on December 24, the final day of bidding, with a subscription of 918.12 times. Meanwhile, the IPOs of Sundrex Oil Company, EPW India, and Dachepalli Publishers also crossed the subscription mark on the last day.
All four companies are scheduled to finalise share allotments by December 26, with their equity shares set to list on the stock exchanges on December 30.
During the three-day subscription window from December 22 to 24, investors placed bids for 361.55 crore equity shares in the Shyam Dhani Industries IPO against an offer size of 39.38 lakh shares, submitting nearly 6.22 lakh applications. This translated into demand worth Rs 25,308.9 crore, far exceeding the company’s valuation of Rs 144.6 crore, based on the upper price band of Rs 70 per share.
Interest remained strong across all investor categories. Non-institutional investors (NIIs) and retail investors subscribed their respective portions by 1,613 times and 1,138 times, while the qualified institutional buyers (QIBs) segment was subscribed 256.2 times.
Reflecting the strong demand, the grey market premium (GMP) rose to around 100 percent over the upper end of the price band, up from 88 percent in the previous session, according to market participants. The grey market is an unofficial platform where IPO shares are traded ahead of listing.
The Rajasthan-based company aims to raise Rs 38.48 crore through its public issue of 54.98 lakh shares priced between Rs 65 and Rs 70 per share. The proceeds will be used to meet working capital needs, fund brand-building and marketing initiatives, purchase new machinery at its existing manufacturing facility, install a solar rooftop plant, repay certain borrowings, and support general corporate purposes.
Among the other IPOs, Sundrex Oil Company’s Rs 32-crore issue was subscribed 1.51 times, with bids for 56.46 lakh shares against an offer of 37.5 lakh shares.
The Rs 32-crore IPO of EPW India, an IT electronics refurbishing firm, saw the lowest response, with a subscription of 1.29 times, as investors applied for 30.36 lakh shares against an issue size of 23.47 lakh shares.
Meanwhile, Dachepalli Publishers’ Rs 40-crore IPO garnered 1.9 times subscription, with bids for 53.83 lakh shares against an offer size of 28.34 lakh shares from 1,231 applications. The NII, retail, and QIB portions were subscribed 2.51 times, 1.9 times, and 1.29 times, respectively.
Separately, of the five IPOs closing on December 26, four were fully subscribed by the second day of bidding. Apollo Techno Industries led with 6.11 times subscription, followed by Dhara Rail Projects at 4.71 times, Bai-Kakaji Polymers at 1.43 times, and Admach Systems at 1.21 times. However, Nanta Tech’s IPO remained undersubscribed at 36 percent as of Wednesday.
