Investors flock to Shyam Dhani IPO as subscription hits 556x; GMP near 90%

Shyam Dhani IPO received bids for 2.19 billion shares against 3.93 million shares on offer, translating into an overall subscription of 556 times

Shyam Dhani Industries IPO Day 3 subscription status: With the subscription window set to close today, the initial public offering (IPO) of Jaipur-based spices manufacturer and exporter Shyam Dhani Industries continues to attract overwhelming demand. The public issue has been subscribed to over 550 times so far, led by robust participation from non-institutional investors (NIIs) and retail investors.

 

As per NSE data, the Shyam Dhani IPO received bids for 2.19 billion shares against 3.93 million shares on offer as of 12:45 PM on December 24. This translates into an overall subscription of 556 times.

 

NIIs were most aggressive, oversubscribing their quota by 948 times, followed by retail investors at 722 times. The subscription from qualified institutional buyers (QIBs) stood at 52 times.

 

Shyam Dhani Industries IPO GMP today

The upbeat market mood was also mirrored in the grey market. Shyam Dhani’s unlisted shares were trading at ₹132, signalling a grey market premium (GMP) of ₹62 or 88.6 per cent over the upper price band on the final day of bidding.  ALSO READ | Gujarat Kidney IPO closes today; subscription up 4x, retail investors lead

Shyam Dhani Industries IPO details

The ₹38.5-crore IPO comprises a fresh issue of 5.5 million equity shares. The public issue is priced in the ₹65–₹70 per share range with a lot size of 2,000 shares. A retail investor needs a minimum investment amount of ₹2,80,000 to apply for at least two lots.

 

Bigshare Services is acting as the registrar for the public offering, while Holani Consultants is serving as the sole book-running lead manager.

 

According to the red herring prospectus (RHP), the company intends to utilise ₹13.26 crore from the net fresh issue proceeds for meeting its working capital requirements. Additionally, ₹10 crore will be used for repayment or prepayment of certain debt availed by the company, ₹6.35 crore for brand creation and marketing expenses, ₹1.63 crore for purchasing new machinery, and ₹64.9 crore for setting up a solar rooftop plant at the existing manufacturing unit. The remaining funds will be used for general corporate purposes. 

Shyam Dhani Industries IPO timeline

With the subscription closing today, the basis of allotment is expected to be finalised on Friday, December 26. Successful bidders may receive shares in their demat accounts by December 29. Shyam Dhani is scheduled to list on the NSE SME platform on Tuesday, December 30, marking its debut on Dalal Street.