Sheetal Universal IPO: Check latest GMP, first day subscription status, review and other important details

The IPO of Sheetal Universal Limited opened for subscription on Monday, December 4th and closes on Wednesday, December 6th. The price range of Sheetal Universal IPO is at ₹70. Investors can bid for at least 2000 shares and multiples thereof. The nominal value of the shares is ₹10 shares and the issue price is 7.00 times the nominal value of the shares.

Sheetal Universal Ltd sources, processes and supplies agricultural raw materials such as peanuts, sesame seeds, spices and grains to meet the needs of peanut butter, biscuits, cakes, chocolate and other food manufacturers. The company's product range includes peanuts, sesame seeds, pulses, spices and other agricultural products.

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Saumesvar International Private Limited and Svar Industries Private Limited are the two subsidiaries of the company. These subsidiaries process and export agricultural commodities such as grains and oilseeds, according to Red Herring Prospectus (RHP).

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Kajal Hiren Patel and Hiren Vallabhbhai Patel are the founders of the company.

According to RHP, the company does not have a comparable listed competitor. Sheetal Universal Ltd's profit after tax (PAT) increased by 602.4% and revenue increased by 230.49% between the financial years ended March 31, 2022 and March 31, 2023.

The company's customers include customers from the Russian Federation, Indonesia, Malaysia, Vietnam, the United Arab Emirates, Iran, Algeria, Israel, Turkey and Egypt.

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Sheetal Universal IPO details

Sheetal Universal IPO that is worth it ₹23.80 crore, is an entirely new issue of 3,400,000 equity shares; According to RHP, there is no OFS (Offer for Sale) component.

The proceeds from the new issue will be used for the following purposes: financing capital expenditure, meeting working capital needs, furthering the company's overall objectives and covering the costs of the public issue.

“We believe that the listing will enhance our corporate image and the visibility of our company’s brand name. We also believe that our company will benefit from listing shares on NSE's Emerge platform. “It will also provide liquidity to existing shareholders and will also create a public trading market for our company’s shares,” the company said in its RHP.

The Registrar of 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.

Sheetal Universal Limited has filed the Draft Red Herring Prospectus (DRHP) with NSE Emerge on September 1, 2023.

Sheetal Universal IPO Subscription Status

The Sheetal Universal IPO subscription status is 3.26x on the first day so far. According to chittorgarh.com, the issue received good response from retail investors whose share was subscribed 2.81 times and non-institutional buyers whose share was subscribed 2.69 times.

According to chittorgarh.com, the company has received offers for 1,05,10,000 shares against 32,28,000 shares on offer at 3:25 pm IST.

Sheetal Universal IPO GMP today

Sheetal Universal IPO GMP today or gray market premium is +81. This suggests that Sheetal Universal's share price was trading at a premium of ₹81 on the gray market, according to investorgain.com.

Taking into account the upper end of the IPO price range and the current premium in the gray market, the estimated listing price of Sheetal Universal shares is ₹81 per piece, which is 15.71% higher than the IPO price of ₹70.

“Gray market premium” indicates investors’ willingness to pay more than the issue price.

Also Read: Sheetal Universal IPO to open on December 4; Check the price range, GMP and other important details

Evaluation of Sheetal Universal Limited IPO

“The company operates in a highly competitive and fragmented segment. The sudden increase in financial performance from fiscal 2023 is raising eyebrows and raising concerns about future sustainability. Based on FY24 annualized returns, the issue appears to be fully priced in. “Well-informed investors could park funds for the medium term,” said Dilip Davda, editor at Chittorgarh.

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Disclaimer: The above views and recommendations are those of individual analysts, experts and brokerage firms, not Mint. We recommend investors consult certified experts before making an investment decision.

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