Shyam Dhani IPO Subscribed 988x, GMP Signals 100% Gain

Introduction to a Blockbuster IPO

The SME IPO market has witnessed extraordinary investor enthusiasm for Shyam Dhani Industries Limited, a Jaipur-based spices manufacturer. The company's ₹38.49 crore initial public offering, which was open for subscription from December 22 to December 24, 2025, concluded with a staggering overall subscription of 988.32 times. This overwhelming response from all investor categories has positioned it as one of the most successful SME IPOs of the year, with a grey market premium (GMP) suggesting the potential for listing gains of up to 100%.

Unprecedented Subscription Demand

The IPO attracted bids worth ₹25,306.95 crore against an issue size of just ₹25.61 crore (net issue). The demand was robust across all investor segments, reflecting high confidence in the company's business model and growth prospects. High Net-worth Individuals (HNIs) led the bidding, subscribing their portion 1,612.72 times. Retail Individual Investors (RII) also showed massive interest, with their category being oversubscribed 1,137.95 times. Qualified Institutional Buyers (QIBs) subscribed their reserved portion 256.24 times.

Grey Market Premium Soars

Reflecting the frenzied subscription, the Grey Market Premium (GMP) for Shyam Dhani Industries' shares has surged. As of December 24, 2025, the GMP stood at ₹70 per share. With the upper price band of the IPO set at ₹70, this indicates a potential listing price of ₹140, translating to a 100% gain on listing day. While GMP is an unofficial indicator, such a high premium signals strong market anticipation for a robust debut on the NSE SME platform.

IPO Details and Timeline

The public issue was a fresh issue of 54,98,000 equity shares. The price band was fixed at ₹65 to ₹70 per share. For retail investors, the minimum lot size was 2,000 shares, requiring a minimum investment of ₹1,40,000 at the upper price band. The allotment of shares is expected to be finalized on December 26, 2025, with the stock scheduled to be listed on the NSE SME exchange on December 30, 2025.

About Shyam Dhani Industries

Established in 1995, Shyam Dhani Industries Limited is an ISO-certified company engaged in manufacturing, exporting, and supplying a wide variety of spices under its flagship brand "SHYAM." The company processes 163 types of ground, blended, and whole spices. It also trades in grocery items like rock salt, rice, and various herbs and seasonings. Its manufacturing facility is located in Jaipur, Rajasthan. The company has a diversified distribution network, selling through general trade, modern trade, quick commerce platforms, private labelling, and exports to countries like the UAE, USA, and UK.

Financial Health and Performance

The company has demonstrated consistent financial growth. For the financial year ending March 31, 2025, Shyam Dhani Industries reported a total income of ₹124.75 crore and a profit after tax (PAT) of ₹8.04 crore. This represents a 16% increase in revenue and a 28% rise in PAT compared to the previous fiscal year. The company's Return on Equity (ROE) stood at an impressive 41.06% for FY25.

Utilization of IPO Proceeds

The net proceeds from the IPO are intended for specific corporate purposes. The company plans to use the funds for the purchase of machinery, installation of a 200 KW solar rooftop system, partial repayment of existing debt, funding incremental working capital requirements, and general corporate purposes.

Competitive Strengths and Risks

The company's strengths include an experienced management team, a wide and diversified product portfolio catering to Indian tastes, and a strong distribution network. However, it also faces risks such as dependency on seasonal agricultural raw materials, which makes it vulnerable to weather fluctuations. Inaccurate demand forecasting for its semi-perishable products could also impact its financial condition.

Market Outlook and Conclusion

The phenomenal response to the Shyam Dhani Industries IPO highlights the strong investor appetite for fundamentally sound companies in the SME sector. With robust financial performance, a well-established brand, and a strong market presence, the company is well-positioned for future growth. Given the massive oversubscription, the probability of allotment will be very low for investors. All eyes will now be on its stock market debut on December 30, 2025, which is widely expected to be a strong one.