Shri Ahimsa Naturals Limited, formerly known as Shri Ahimsa Mines and Minerals Ltd., is set to launch its IPO on March 25, 2025. The company is engaged in the extraction and manufacturing of products like Caffeine Anhydrous Natural, Green Coffee Bean Extracts (GCE), and Crude Caffeine. These products are widely used in the food and beverage, nutraceuticals, cosmetics, and pharmaceutical industries due to their health benefits. With a well-established presence in the herbal extracts market, the company is poised to attract investor interest through this IPO.

The total IPO size of Shri Ahimsa Naturals is ₹73.81 Crores, which includes a fresh issue of 42.03 lakh shares amounting to ₹50.02 Crores and an offer for sale of 19.92 lakh shares, totaling ₹23.79 Crores. The subscription period for the IPO will begin on March 25, 2025, and close on March 27, 2025. The allotment is expected to be finalized by March 28, 2025, and the shares will be listed on the NSE SME with a tentative listing date set for April 3, 2025.

IPO Price Band and Lot Size

The IPO is priced between ₹113 and ₹119 per equity share, with the market capitalization at the upper end of the price band pegged at ₹277.62 Crores. The lot size for the IPO is 1,200 shares, which means retail investors need to invest a minimum of ₹1,42,800. For High-Net-Worth Individuals (HNIs), the minimum investment is for 2 lots, totaling ₹2,85,600. These price points are designed to make the offer accessible to a wide range of investors.

Anchor Investors and Market Maker

The company has raised ₹20.87 Crores from Anchor Investors at the price of ₹119 per share. The book-running lead manager for the IPO is Srujan Alpha Capital Advisors LLP, while Cameo Corporate Services Limited serves as the registrar. The market maker for the issue is Choice Equity Broking Private Limited, who will help maintain liquidity in the shares post-listing.

Grey Market Premium (GMP)

As of today, the Grey Market Premium (GMP) for the IPO stands at ₹0, indicating that the IPO's listing gain potential is minimal at present. This premium reflects the demand and supply dynamics in the unorganized market and should be treated as purely informational, not an indicator of the actual listing price.

Subscription Trends and Allotment Status

At the time of writing, the IPO has been subscribed 0.04 times on its first day, March 25, 2025, indicating early interest. Investors can track the live subscription status via the NSE website for real-time updates.

Once the allotment process is finalized on March 28, 2025, investors can check their allotment status online by visiting the registrar's website. To check the status, they will need to select Shri Ahimsa Naturals IPO from the dropdown list and enter the relevant details such as application number, PAN, or DP client ID.

Objectives of the IPO

The proceeds from the IPO will be utilized for the following objectives:

1. Investment in their wholly-owned subsidiary, Shri Ahimsa Healthcare Private Limited (SAHPL), to set up a manufacturing facility at Sawarda, Jaipur, Rajasthan, amounting to ₹3,500.00 Lakhs.

2. The remaining funds will be used for general corporate purposes.

Financial Overview and IPO Valuation

For the fiscal year 2024, Shri Ahimsa Naturals reported revenues from operations of ₹5,894.23 Lakhs, reflecting a consistent growth trajectory. The EBITDA for the same period was ₹1,438.88 Lakhs, showing healthy profitability. The Profit after Tax (PAT) for FY24 stood at ₹974.45 Lakhs, indicating strong earnings. Other key metrics include:

• Pre-issue EPS: ₹10.19

• Post-issue EPS: ₹8.00

• Pre-issue P/E ratio: 11.68x

• Post-issue P/E ratio: 14.87x

• ROCE: 25.69%

• ROE: 22.25%

The valuation of the IPO suggests that it is priced reasonably based on the financials. However, with a Grey Market Premium of 0%, investors should be cautious if looking for immediate listing gains.

Conclusion: Should You Invest?

The financials and market metrics of Shri Ahimsa Naturals indicate steady growth and strong leadership. However, the minimal GMP and the company's overall valuation suggest that this IPO is not ideal for those seeking immediate listing gains. We recommend investors approach the Shri Ahimsa Naturals IPO with caution, especially considering its current GMP and other market conditions.

By following the above format, you can make an informed decision regarding your investment in the Shri Ahimsa Naturals IPO.

The Upcoming IPOs in this week and coming weeks are Arisinfra Solutions Limited,Identixweb Limited,Retaggio Industries Limited,Infonative Solutions Limited.

The Current active IPO are ATC Energies System Limited, Shri Ahimsa Naturals Limited,Desco Infratech Limited,Rapid Fleet Management Services, Active Infrastructures Limited.

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