The much-anticipated initial public offering (IPO) of Shreeji Global FMCG Limited has officially opened for subscription, marking a significant milestone for the company and presenting a new investment opportunity in the fast-moving consumer goods sector.
IPO Essentials: What You Need to Know
The SME IPO, which runs from December 27 to December 29, 2024, aims to raise approximately ₹15.99 crore through a fresh issue of 28.80 lakh shares. The company has fixed the price band at ₹55 to ₹58 per share, making it accessible to retail investors looking to enter the FMCG space.
Financial Snapshot and Business Model
Shreeji Global FMCG operates as a B2B distributor of FMCG products, serving as a crucial link between manufacturers and retailers. The company's financial performance shows promising growth, with revenue increasing from ₹13.15 crore in FY22 to ₹17.53 crore in FY23. More impressively, net profit surged from ₹0.25 crore to ₹1.15 crore during the same period, indicating strong operational efficiency.
The company plans to utilize the IPO proceeds for:
- Meeting working capital requirements
- Supporting general corporate purposes
- Funding issue-related expenses
Grey Market Premium and Market Sentiment
Market observers are particularly interested in the Grey Market Premium (GMP), which currently stands at ₹20 per share. This indicates strong investor appetite and suggests the shares could list at a premium of approximately 34% over the upper price band. The GMP trend will be closely watched throughout the subscription period as it reflects market sentiment toward the issue.
Subscription Details and Timeline
Key dates to remember:
- IPO Opening Date: December 27, 2024
- IPO Closing Date: December 29, 2024
- Basis of Allotment: January 2, 2025
- Refund Initiation: January 3, 2025
- Credit to Demat: January 6, 2025
- Listing Date: January 7, 2025
Investment Considerations
For potential investors, Shreeji Global FMCG represents an opportunity to participate in India's growing FMCG distribution network. The company's established presence in the B2B segment and demonstrated financial growth make it an interesting proposition. However, as with any IPO investment, careful evaluation of the company's prospects against market conditions is recommended.
The IPO is being managed by Beeline Capital Advisors, with Skyline Financial Services appointed as the registrar. The shares are proposed to be listed on the BSE SME platform, providing liquidity and visibility to investors post-listing.
