Shri Ahimsa Naturals Limited, formerly known as Shri Ahimsa Mines and Minerals Ltd., is poised to launch its IPO, offering an exciting opportunity for investors. The company specializes in the extraction, manufacturing, and trading of natural caffeine and herbal extracts, such as Green Coffee Bean Extracts (GCE) and crude caffeine, which are widely used in industries such as food & beverage, nutraceuticals, cosmetics, and pharmaceuticals.

The Shri Ahimsa Naturals IPO, a Book Built Issue, is set to raise ₹73.81 Crores. This consists of a fresh issue of 42.03 lakh shares worth ₹50.02 crores, alongside an offer for sale of 19.92 lakh shares, totaling ₹23.79 crores. The subscription period for the IPO opens on March 25, 2025, and closes on March 27, 2025, with allotment expected by March 28, 2025. The listing is anticipated on the NSE SME on April 3, 2025.

The price band for the IPO is set at ₹113-₹119 per share, and with a market capitalization of ₹277.62 crores at the upper price band, the company is offering a lot size of 1,200 shares. For retail investors, the minimum investment stands at ₹1,42,800, while high-net-worth individuals (HNIs) must invest in 2 lots, totaling ₹2,85,600.

As of March 26, 2025, the Shri Ahimsa Naturals IPO has been subscribed 1.34 times, reflecting positive investor interest. However, the Grey Market Premium (GMP) currently stands at ₹0, indicating a lack of real price discovery in the unorganized market. The GMP trend remains relatively flat, which is common in the early stages of subscription.

Shri Ahimsa Naturals has raised ₹20.87 crores from anchor investors at ₹119 per share, with a total allocation of 17.54 lakh shares. This strong support from institutional investors bolsters the IPO’s prospects, although the lack of a significant GMP may signal caution for those looking for immediate listing gains.

The IPO proceeds will be used to expand the company’s operations, including an investment of ₹35 crores in its wholly-owned subsidiary, Shri Ahimsa Healthcare Pvt. Ltd. This investment will help set up a new manufacturing facility in Sawarda, Jaipur, Rajasthan, which is expected to enhance production capacity and fuel future growth. Additionally, a portion of the funds will be utilized for general corporate purposes.

Financially, Shri Ahimsa Naturals has demonstrated steady growth. For the fiscal year ending September 30, 2024, the company reported revenues of ₹5,894.23 lakh, up from ₹4,137.12 lakh in 2022. The profit after tax for FY24 was ₹974.45 lakh, reflecting solid profitability. Key financial metrics include a pre-issue EPS of ₹10.19 and a post-issue EPS of ₹8.00. The pre-issue P/E ratio stands at 11.68x, with a post-issue P/E ratio of 14.87x, suggesting that the IPO is fairly priced relative to industry standards.

Despite these promising metrics, the IPO’s Grey Market Premium of ₹0 and modest P/E ratios indicate that there may not be significant listing gains. This suggests that potential investors may need to focus on the long-term prospects of the company rather than short-term price movements.

The Shri Ahimsa Naturals IPO has been supported by strong leadership, including promoters with extensive industry experience. The company’s prospects are bolstered by its established market position in the herbal extract industry and the growing demand for natural health products.

For investors interested in tracking the IPO allotment, the status will be available on the registrar’s website starting on March 28, 2025. To check the allotment, investors can visit the website, select the IPO from the dropdown menu, and enter their application details.

In conclusion, while the lack of a significant Grey Market Premium may raise concerns for those seeking quick listing gains, Shri Ahimsa Naturals presents an opportunity for long-term investors. The company's steady financial performance, strategic expansion plans, and solid backing from anchor investors make it an IPO worth watching closely. Investors are advised to carefully consider their investment strategy based on these factors and be prepared for potential long-term returns rather than immediate price movements.

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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