Shivashrit Foods shares list at 5% premium over IPO price on NSE SME platform

Shivashrit Foods debuted on the NSE SME platform on Monday, listing at Rs 148.50 apiece, a 4.6% premium over its IPO price. Ahead of the debut, the company’s shares were trading at a modest 1% premium in the grey market, indicating muted listing expectations.

IPO details and subscription

The Rs 70.03 crore IPO of Shivashrit Foods was open for subscription between August 22 and August 26. The company had fixed the issue price at Rs 142 per share. The IPO was a mix of fresh issue of 43 lakh shares worth Rs 61.29 crore and an offer for sale (OFS) of 6 lakh shares worth Rs 8.75 crore.

The issue received 2.89 times overall subscription. The retail portion was subscribed 2.65 times, while non-institutional investors (NIIs) bid 5.16 times their quota. Qualified institutional buyers (QIBs) subscribed 1.59 times. The company also raised Rs 19.92 crore from anchor investors ahead of the IPO launch.

Use of funds and business profile

The company plans to use Rs 26.3 crore from the IPO proceeds for capital expenditure related to its expansion project, Rs 19 crore for working capital, and the balance for general corporate purposes.

Shivashrit Foods, incorporated in 2017, manufactures and supplies potato flakes. The company markets its products under three brands — Shivashrit, Shreeaahar and Flaker’s. It sells in several Indian states and also exports to countries including the USA, Brazil, Israel, Mexico and Indonesia.

Financials

The company’s revenue rose 36% in FY25 to Rs 105.85 crore compared with Rs 77.55 crore in FY24. Profit after tax increased 4% to Rs 12.06 crore from Rs 11.61 crore a year earlier.

With a grey market premium of just 1%, the IPO is expected to list close to its issue price of Rs 142. The modest subscription numbers and slim GMP reflect cautious investor sentiment.

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