Sacheerome Limited, a company known for creating fragrances and flavours that evoke emotions, has launched its Initial Public Offering (IPO) on the NSE SME platform. The issue opened for subscription on June 9, 2025, and will close on June 11, 2025.

This is a Book Built Issue of ₹61.61 crores, comprising entirely of a fresh issue of 60.40 lakh equity shares. The price band for the IPO has been fixed between ₹96 and ₹102 per share, with each lot consisting of 1,200 shares.

Retail investors must invest a minimum of ₹1,22,400, while High-Net-Worth Individuals (HNIs) are required to apply for at least 2 lots, amounting to ₹2,44,800.

The Market Capitalisation of Sacheerome Limited at the upper price band of ₹102 stands at approximately ₹228.20 crores. The tentative allotment date is June 12, 2025, and the listing date is expected around June 16, 2025.

The IPO is managed by GYR Capital Advisors Private Limited, with Link Intime India Private Limited serving as the registrar, and Giriraj Stock Broking Private Limited acting as the Market Maker.

About the Company

Sacheerome Limited is a group of innovators and creative thinkers that specialise in designing fragrances and flavours. Their offerings aim to stimulate sensory experiences, taking users back to cherished memories and forward into hopeful dreams.

The company is led by Mr. Manoj Arora, the Promoter and strategic head, who brings 40 years of experience in the industry. He oversees R&D, QC, and daily management, and is credited with driving innovation and scaling operations. His spouse, Mrs. Alka Arora, is also a promoter contributing to the company's overall vision.

Financial Performance

Sacheerome Limited has shown consistent financial growth over the last few years:

• Revenue from Operations:

  • FY22: ₹64.36 crore

  • FY23: ₹70.93 crore

  • FY24: ₹86.39 crore

  • FY25 (provisional): ₹108.13 crore

• EBITDA:

  • FY22: ₹8.97 crore

  • FY23: ₹10.36 crore

  • FY24: ₹16.45 crore

  • FY25 (provisional): ₹23.46 crore

• Profit After Tax (PAT):

  • FY22: ₹4.55 crore

  • FY23: ₹5.99 crore

  • FY24: ₹10.67 crore

  • FY25 (provisional): ₹15.98 crore

These figures reflect strong and steady growth in both top-line and bottom-line performance.

Valuation Metrics

As per the financial disclosures:

• Pre-Issue EPS (FY24): ₹9.79

• Post-Issue EPS (FY24): ₹7.14

• Pre-Issue P/E: 10.41x

• Post-Issue P/E: 14.28x

• Return on Capital Employed (ROCE): 33.00%

• Return on Equity (ROE): 25.78%

• Return on Net Worth (RoNW): 25.78%

These indicators suggest that the issue is moderately priced, considering the industry average P/E ratio for SMEs in the consumer goods space.

Grey Market Premium (GMP)

As of the latest reports, the Grey Market Premium (GMP) for Sacheerome IPO is ₹25, suggesting a potential listing gain of around 24.50% over the upper price band of ₹102.

The strong financials, combined with positive GMP movement, indicate optimism among investors, especially those aiming for short-term listing gains.

Risk Factors

Despite the promising outlook, potential investors should consider a few risks:

• SME IPOs tend to have lower liquidity, making exit challenging in some cases

• Heavy reliance on the expertise of a few key managerial personnel, especially Mr. Manoj Arora

• The company operates in a highly competitive fragrance and flavour industry, where innovation and consistency are critical

• Any disruption in supply chains or raw materials could impact margins

Analyst Recommendation

Given the company's consistent revenue growth, healthy profitability margins, and the favourable market response as reflected in GMP, the Sacheerome IPO is recommended for 'Risk-taking investors' seeking short-term gains.

However, conservative investors may consider waiting for post-listing performance and more clarity on long-term strategy before making any investment decisions.

Conclusion

Sacheerome Limited's IPO brings forward a niche but growing player in the fragrance and flavour industry, with a track record of innovation, growth, and profitability. The company's leadership under Mr. Manoj Arora, combined with sound financial indicators, makes it an attractive proposition in the short term.

Investors with a high-risk appetite may apply to the IPO, keeping in mind volatility in the SME segment and the need for closer post-listing monitoring.

Disclaimer

This article is for educational and informational purposes only and does not constitute financial advice. Investment decisions should be based on individual risk tolerance and consultation with SEBI-registered advisors. Market conditions are volatile and subject to change. Neither the author nor the platform is responsible for losses arising from use of this information.

The Upcoming IPOs in this week and coming weeks are Safe Enterprises Retail Fixtures, Globe Civil Projects, Sambhav Steel Tubes, Ellenbarrie Indutrial Gases, Kalpataru, HDB Financials, AJC Jewel, ArisInfra Solutions, Influx Healthtech, Mayasheel Ventures, Eppeltone Engineers.

The Current active IPO are Oswal Pumps, Patil Automation, Samay Projects Services, Aten Papers, Monolithisch India.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.