Sheetal Universal IPO, which opened for subscription on December 4, is set to close today, December 6. This SME IPO entails a fixed-price issue amounting to ₹23.80 crore, consisting entirely of a fresh issue of 34 lakh shares.
About Sheetal Universal Ltd
Sheetal Universal Ltd specializes in sourcing, processing, and supplying agricultural commodities, including peanuts, sesame seeds, spices, and grains. These products cater to the requirements of producers in the food industry, producing items such as peanut butter, biscuits, cakes, chocolate, and various other food products. The company’s diverse product line includes peanuts, sesame seeds, pulses, spices, and other agro-products.
Subscription Status and Market Observations
As of December 6, the final day of the bidding process, Sheetal Universal IPO has been oversubscribed 55.86 times. The public issue has received bids for 18.03 crore equity shares against the 32.28 lakh shares on offer, as of 1:10 pm. Notably, the IPO has seen robust subscription rates of 64.96 times in the retail category and 40.00 times in the non-institutional investors’ (NII) category.
Grey Market Premium (GMP) Today
The Grey Market Premium (GMP) for Sheetal Universal IPO today stands at ₹12. This suggests that Sheetal Universal shares are trading at a premium of ₹12 in the grey market, indicating positive market sentiment.
Considering the upper end of the IPO price band and the current grey market premium, the estimated listing price for Sheetal Universal shares is ₹82 apiece. This represents a significant 17.14% increase from the IPO price of ₹70.
IPO Details and Important Dates
Sheetal Universal IPO, with a price band of ₹70, opened for subscription on December 4 and is closing on December 6. Investors can bid for a minimum of 2,000 shares and in multiples thereof. The IPO allotment is expected to be finalized on Thursday, December 7, with the tentative listing date on NSE SME set for December 11.
Utilization of Proceeds
The funds raised through this new issue will be utilized for financing capital expenditures, meeting working capital needs, and advancing the company’s overall goals.
Key IPO Participants
The registrar of the Sheetal Universal IPO is Bigshare Services Pvt Ltd, and the book running lead manager is Beeline Capital Advisors Pvt Ltd. Spread X Securities is the market maker for the Sheetal Universal IPO.
Financial Performance and Growth
According to the RHP, Sheetal Universal Ltd does not have a comparable listed peer. The company’s Profit After Tax (PAT) witnessed an impressive increase of 602.4%, and revenue grew by 230.49% between the fiscal years ending on March 31, 2022, and March 31, 2023.
Global Clientele
Customers from diverse regions, including the Russian Federation, Indonesia, Malaysia, Vietnam, UAE, Iran, Algeria, Israel, Turkey, and Egypt, contribute to the company’s global clientele.
Promoters
Sheetal Universal Ltd is promoted by Kajal Hiren Patel and Hiren Vallabhbhai Patel.
In conclusion, Sheetal Universal IPO has garnered substantial attention from investors, with a strong subscription rate, positive grey market premium, and promising growth prospects for the company in the agricultural commodities sector.
