In a spectacular market debut, Jaipur-based Shyam Dhani Industries saw its shares nearly double on Tuesday, listing at a massive premium on the NSE SME platform. The stock opened strongly and immediately hit the upper circuit, locking at Rs 139.65, a staggering 90% premium over its issue price of Rs 70.
A Record-Breaking Investor Response
The blockbuster listing was the culmination of an extraordinary initial public offering (IPO) journey. The public issue was subscribed close to 1,000%, making it the fifth most subscribed SME IPO in the history of India's SME market. The scale of investor interest was monumental, with the company attracting bids worth approximately Rs 25,306 crore against a relatively modest issue size of just Rs 38.49 crore.
Reacting to the overwhelming response, Chairman and Managing Director Ramawtar Agarwal stated that the stellar listing has increased the company's responsibilities. Ashok Holani of Holani Consultants, the book-running lead manager, expressed astonishment at the subscription figures. "We never saw bids of Rs 25,000 crore against a fund-raising of just Rs 38 crore," Holani said, attributing the frenzy to the company's solid business model, attractive valuation, and consistent growth trajectory.
From Jaipur's VKI Area to National Capital Markets
The listing marks a dramatic transformation for a company that began three decades ago as a small spice-grinding unit in Jaipur's VKI industrial area. Agarwal recalled founding the business in 1995, a time when loose, unbranded masala dominated Indian kitchens and the sector was largely unorganised.
"From day one, I wanted to build a brand. It was a bold bet at a time when branding spices seemed unnecessary," Agarwal said. The company's first major breakthrough came in 2006 when it entered modern trade by supplying private-label masala to Reliance. This was followed by successful tie-ups with Spencer's and the Aditya Birla Group.
However, Agarwal identified the 2012 association with Metro Cash and Carry as a crucial turning point, as it provided Shyam Dhani with nationwide visibility. The company strategically diversified its distribution across all channels, including general trade, kirana stores, modern retail chains like Reliance and D-Mart, and e-commerce platforms.
Diversification and Future Growth
Over the years, Shyam Dhani has significantly expanded its product portfolio. It moved from selling single spices to creating blends, then introduced whole spices. In 2018, the company entered the broader FMCG segment with products like poha, rice, and sabudana.
The company's journey from a local grinding unit to a publicly listed entity with a record-setting IPO underscores the potential within India's SME sector and the evolving branded foods market. The massive premium on listing reflects strong investor confidence in its growth story and execution capabilities.
