Shyam Dhani IPO: Subscription Soars Over 260x on Day 2

Introduction to Shyam Dhani Industries IPO

Jaipur-based spice manufacturer Shyam Dhani Industries has received an exceptional response for its initial public offering (IPO) on the SME platform of the National Stock Exchange. The issue, which opened for subscription on December 22, 2025, was met with overwhelming demand from all investor categories, particularly from retail and non-institutional investors. The strong subscription figures and a robust grey market premium indicate significant investor confidence in the company's growth prospects.

Overwhelming Investor Response and Subscription Details

The IPO was oversubscribed more than 261 times by the end of the final day of bidding on December 24, 2025. The issue received bids for 95.61 crore equity shares against the 36.58 lakh shares on offer. The demand was primarily led by non-institutional investors (NIIs) and retail individual investors (RIIs), whose portions were subscribed 373.04 times and 356.54 times, respectively. The portion reserved for Qualified Institutional Buyers (QIBs) also saw healthy demand, with a subscription of 10.70 times.

Grey Market Premium Signals Strong Listing

Reflecting the strong subscription numbers, the grey market premium (GMP) for Shyam Dhani Industries' shares surged significantly. Market observers noted that the shares were commanding a premium of around ₹50 in the unlisted market. This suggests a potential listing price of ₹120 per share, a premium of over 71% compared to the upper end of the IPO price band of ₹70. The consistent rise in the GMP, from around ₹21 before the issue opened to ₹50 during the bidding process, highlights the positive market sentiment surrounding the company's debut.

Company Overview and Business Model

Established in 1995, Shyam Dhani Industries Limited is an ISO-certified company that manufactures, exports, and supplies a wide range of spices under the brand name 'SHYAM'. The company processes 163 varieties of spices, including ground, blended, and whole spices. In addition to its core spice business, it also trades in grocery products like salts, rice, poha, and various herbs and seasonings. The company operates from its manufacturing facility in Jaipur, Rajasthan, and distributes its products through multiple channels, including general trade, modern retail chains, and quick-commerce platforms.

IPO Details at a Glance

The primary objective of the ₹38.49 crore IPO is to raise capital for working capital requirements, repayment of borrowings, brand creation, and purchase of new machinery. The issue is entirely a fresh issue of 54.98 lakh equity shares.

Financial Performance and Growth

Shyam Dhani Industries has demonstrated consistent financial growth. For the fiscal year ending March 31, 2025, the company reported a total income of ₹124.75 crore and a profit after tax (PAT) of ₹8.04 crore. This represents a significant increase from the previous fiscal year, where it recorded a total income of ₹107.64 crore and a PAT of ₹6.30 crore. The company's Return on Equity (ROE) stood at 41.06% for FY25, indicating efficient use of shareholder funds.

Company Strengths and Market Position

The company's key strengths include its wide portfolio of 163 spice varieties, an integrated manufacturing facility that provides cost efficiencies, and a strong distribution network across multiple channels. The experienced promoters and a skilled workforce further support its operations. The Indian spice market is highly competitive, but the company's established brand and multi-channel presence provide a stable foundation for growth. However, potential risks include its dependence on a limited number of customers and suppliers.

Conclusion

The remarkable success of the Shyam Dhani Industries IPO, marked by massive oversubscription and a strong grey market premium, reflects robust investor appetite for companies with strong fundamentals in the SME segment. The funds raised are expected to strengthen the company's financial position and support its expansion plans. With a solid business model and consistent financial performance, the company is poised for a strong market debut on December 30, 2025.