Sacheerome Limited, a company known for creating unique fragrances and flavours, is set to launch its Initial Public Offering (IPO) with a total issue size of ₹61.61 crore. The IPO will open for subscription from June 9 to June 11, 2025. The allotment is expected to be finalised on or around June 12, 2025, and the shares are expected to be listed on the NSE SME platform on June 16, 2025.

The IPO comprises a fresh issue of 60.40 lakh equity shares. The price band for the offering is fixed at ₹96 to ₹102 per equity share. The market capitalisation of Sacheerome Limited at the upper band of ₹102 per share will be approximately ₹228.20 crore.

Investment Details

The lot size for retail investors is 1,200 shares, requiring a minimum investment of ₹1,22,400. For High-Net-Worth Individuals (HNIs), the minimum application is for 2 lots, i.e., 2,400 shares, amounting to ₹2,44,800.

GYR Capital Advisors Private Limited is the book running lead manager, Link Intime India Private Limited is the registrar, and Giriraj Stock Broking Private Limited will act as the market maker for this issue.

Company Profile

Sacheerome Limited is driven by a team of innovators, creative thinkers, and collaborators. The company is engaged in designing fragrances and flavours that evoke human emotions, with a focus on nostalgia and sensory experiences. The brand’s success is powered by the leadership of Mr. Manoj Arora and Mrs. Alka Arora, who have played an instrumental role in shaping the company’s journey.

Mr. Manoj Arora, with over 40 years of experience, leads the company’s R&D and quality control divisions, ensuring high standards in both innovation and operations. His leadership extends across strategic decisions and everyday business management.

Financial Performance

Sacheerome has reported consistent financial growth over the years:

• Revenue from operations:

  • FY25 (till Mar 31): ₹10.81 crore

  • FY24: ₹8.63 crore

  • FY23: ₹7.09 crore

  • FY22: ₹6.43 crore

• EBITDA:

  • FY25 (till Mar 31): ₹2.34 crore

  • FY24: ₹1.64 crore

  • FY23: ₹1.03 crore

  • FY22: ₹0.89 crore

• Profit After Tax (PAT):

  • FY25 (till Mar 31): ₹1.59 crore

  • FY24: ₹1.06 crore

  • FY23: ₹0.59 crore

  • FY22: ₹0.45 crore

These figures underline the steady upward trajectory in revenues and profits, indicating strong business fundamentals.

Valuation Metrics

• Pre-issue EPS (FY24): ₹9.79

• Post-issue EPS: ₹7.14

• Pre-issue P/E Ratio: 10.41x

• Post-issue P/E Ratio: 14.28x

• ROCE (FY24): 33.00%

• ROE (FY24): 25.78%

• RoNW (FY24): 25.78%

These valuation metrics suggest that the IPO is fairly priced considering the strong return ratios and reasonable P/E multiples.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for Sacheerome IPO is currently around ₹13, indicating an expected listing gain of around 12.74% at the upper price band. However, it's important to note that the GMP is speculative and unregulated, and actual listing price may vary based on broader market conditions.

Risk and Recommendation

Although Sacheerome exhibits consistent growth, strong promoter experience, and healthy financials, the SME IPO space inherently carries higher risk due to lower liquidity and higher volatility. The post-issue P/E of 14.28x is on the higher side for the SME space but justifiable given the robust ROE and ROCE figures.

Investors with a moderate risk appetite looking for listing gains may consider applying. Conservative or long-term investors should evaluate the fundamentals and industry outlook more closely before committing.

Disclaimer: The Grey Market Premium (GMP) and all financial figures mentioned are for informational purposes only. Investors are advised to consult with a SEBI-registered financial advisor before making investment decisions.

The Upcoming IPOs in this week and coming weeks are Jainik Power Cables, Sacheerome Limited, Victory Electric Vehicles International, Wagons Learning.

The Current active IPO are Ganga Bath Fittings.

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