Sheetal Universal IPO: Check latest GMP, subscription status on day 1, review, other key details

Sheetal Universal Ltd sources, processes, and supplies agricultural commodities like peanuts, sesame seeds, spices, and grains in order to serve the needs of producers of peanut butter, biscuits, cakes, chocolate, and other food items. The company’s product line includes peanuts, sesame seeds, pulses, spices, and other agro-products.

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Saumesvar International Private Limited and Svar Industries Private Limited are the company’s two subsidiaries. These subsidiaries process and export agricultural commodities, such as grains and oil seeds, as per Red Herring Prospectus (RHP).

Kajal Hiren Patel and Hiren Vallabhbhai Patel are the company’s promoters.

As per the RHP, the company does not have comparable listed peer. The profit after tax (PAT) of Sheetal Universal Ltd increased by 602.4% and revenue by 230.49% between the fiscal years ending on March 31, 2022, and March 31, 2023.

Customers from the Russian Federation, Indonesia, Malaysia, Vietnam, UAE, Iran, Algeria, Israel, Turkey, and Egypt are among the company’s clientele.

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Sheetal Universal IPO details

Sheetal Universal IPO, which is worth ₹23.80 crore, is completely a fresh issue of 3,400,000 equity share; there is no offer for sale (OFS) component, according to RHP.

The proceeds from the new issue will be used for the following purposes: financing capital expenditures, meeting working capital needs, advancing the company’s overall goals, and covering public issue costs.

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

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.

Sheetal Universal limited has filled draft red herring prospectus (DRHP) with NSE Emerge on September, 1 2023.

Sheetal Universal IPO subscription status

Sheetal Universal IPO subscription status is 3.26 times on day 1, so far. The issue received good response from retail investors who’s portion set was subscribed 2.81 times, and non-institutional buyers who’s portion was subscribed 2.69 times, according to data on chittorgarh.com.

The company has received bids for 1,05,10,000 shares against 32,28,000 shares on offer, at 15:25 IST, according to data on chittorgarh.com.

Sheetal Universal IPO GMP today

Sheetal Universal IPO GMP today or grey market premium is +81. This indicates Sheetal Universal share price were trading at a premium of ₹81 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Sheetal Universal share price is ₹81 apiece, which is 15.71% higher than the IPO price of ₹70.

‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

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Sheetal Universal Limited IPO Review

“The company is operating in a highly competitive and fragmented segment. The sudden boost in its financial performance for FY23 onward raise eyebrows and concern over the sustainability going forward. Based on supper annualised FY24 earnings, the issue appears fully priced. Well-informed investors may park funds for the medium term,” said Dilip Davda, the contributing editor at Chittorgarh.

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Disclaimer: We advise investors to check with certified experts before making any investment decisions.