Shyam Dhani Industries IPO: Stock Debuts with 90% Premium

A Strong Market Debut

Shares of Shyam Dhani Industries Ltd made a stellar debut on the NSE Emerge platform on December 30, listing at ₹133 per share. This represented a 90% premium over its initial public offering (IPO) issue price of ₹70, delivering substantial gains to investors who were allotted shares. The listing performance was robust, although slightly below the grey market premium (GMP) which had indicated expectations of a near 100% gain ahead of the debut. Following the strong opening, the stock continued its upward momentum, hitting an intraday high of ₹139.65. The successful listing valued the Jaipur-based spices manufacturer at a market capitalization of approximately ₹282 crore.

Unprecedented Investor Demand

The enthusiasm for the Shyam Dhani Industries IPO was evident from its subscription figures, which set records for the year. The public issue, which was open from December 22 to December 24, was subscribed an extraordinary 988.29 times overall. The issue attracted bids for over 3.61 billion shares against the 3.65 million shares on offer, translating to a total demand of around ₹25,306 crore for an issue size of just ₹38.49 crore. This overwhelming response made it the most subscribed SME IPO of 2025 and one of the top five most subscribed in India's SME market history.

Subscription Across Categories

Demand was strong across all investor categories. The non-institutional investor (NII) segment led the bidding, with their portion being oversubscribed by a staggering 1,612.65 times. Retail individual investors also showed immense interest, subscribing 1,137.92 times their allotted quota. The qualified institutional buyers (QIBs) portion was subscribed 256.24 times, indicating solid institutional confidence in the company's prospects. The massive interest from all corners of the market underscored the high investor appetite for fundamentally sound companies in the SME space.

IPO Details at a Glance

The IPO was structured as a pure fresh issue of 5.5 million equity shares, with no offer-for-sale (OFS) component. This means the entire proceeds from the issue will go to the company for its growth and operational needs.

Calculating Investor Returns

The 90% listing gain translated into significant profits for allottees. For retail investors, the minimum application size was one lot of 4,000 shares, requiring an investment of ₹2,80,000. On listing day, these investors earned a profit of ₹2,52,000 (₹63 gain per share × 4,000 shares), nearly doubling their initial investment. Similarly, high net-worth individuals (HNIs) who invested in larger lots also saw substantial returns, reflecting the broad-based success of the public offering.

About the Company

Incorporated in 1995, Shyam Dhani Industries is an ISO-certified company engaged in manufacturing, exporting, and supplying premium spices. Operating under the flagship brand "SHYAM," the company processes over 163 varieties of spices, including whole, powdered, and blended spices. Its product portfolio also extends to grocery items. The company operates from its manufacturing facility in Jaipur, Rajasthan, and has a wide distribution network catering to general trade, modern retail, quick commerce, and export markets.

Financial Performance

Shyam Dhani Industries has demonstrated steady financial growth. For the fiscal year ended March 31, 2025 (FY25), the company reported a total income of ₹124.75 crore, a 16% increase from ₹107.64 crore in FY24. Its profit after tax (PAT) grew by 28% to ₹8.04 crore in FY25 from ₹6.30 crore in the previous year. The company's EBITDA also improved to ₹14.52 crore, reflecting healthy operational efficiency.

Use of IPO Proceeds

The company plans to strategically deploy the ₹38.49 crore raised through the IPO to fuel its next phase of growth. A significant portion, ₹13.26 crore, is allocated for working capital requirements. Other key objectives include repaying ₹10 crore of its debt, spending ₹6.35 crore on brand creation and marketing, purchasing new machinery worth ₹1.63 crore, and installing a solar rooftop plant. The remaining funds are intended for general corporate purposes.

Market Outlook and Conclusion

The blockbuster listing of Shyam Dhani Industries highlights the strong investor confidence in India's SME sector, particularly for companies with solid fundamentals and clear growth strategies. The near-1,000 times oversubscription and a 90% listing day gain are testaments to the company's perceived value. However, for the stock to sustain these high valuations, the company must effectively execute its expansion plans and consistently deliver on its financial projections. The real test will be its ability to convert the IPO capital into long-term business growth and shareholder value.