Shri Ahimsa Naturals Limited, formerly known as Shri Ahimsa Mines and Minerals Ltd., is a prominent player in the herbal extract industry. Specializing in the extraction and manufacturing of Caffeine Anhydrous Natural, Green Coffee Bean Extracts (GCE), and Crude Caffeine, the company caters to a diverse range of industries, including food & beverages, nutraceuticals, cosmetics, and pharmaceuticals. These products are well-known for their health benefits, making them highly sought after in various sectors.

IPO Overview

Shri Ahimsa Naturals is offering a Book Built Issue amounting to ₹ 73.81 Crores. The issue consists of a Fresh Issue of 42.03 lakh shares worth ₹ 50.02 Crores, and an Offer for Sale of 19.92 lakh shares amounting to ₹ 23.79 Crores. The subscription for this IPO opens on March 25, 2025, and closes on March 27, 2025. The allotment is expected to be finalized by Friday, March 28, 2025. The shares will be listed on the NSE SME with a tentative listing date set for Thursday, April 03, 2025.

The price band for the IPO has been set between ₹ 113 and ₹ 119 per equity share. At the upper end of the price band (₹ 119), the market capitalization of Shri Ahimsa Naturals will stand at ₹ 277.62 Crores. Investors will be required to purchase a minimum lot size of 1,200 shares, with a retail investment of ₹ 1,42,800. High-Net-Worth Individuals (HNIs) are required to invest in a minimum of 2 lots (2,400 shares), which amounts to ₹ 2,85,600.

Lead Manager and Registrar

The Book Running Lead Manager for the IPO is Srujan Alpha Capital Advisors LLP, and the registrar for the issue is Cameo Corporate Services Limited. The Market Maker for the IPO is Choice Equity Broking Private Limited.

Shri Ahimsa Naturals IPO GMP

As of the latest update, the Grey Market Premium (GMP) for the Shri Ahimsa Naturals IPO is ₹ 0, indicating no premium or expected listing gains. The GMP reflects the market sentiment in the unorganized grey market, which fluctuates based on demand and supply but should be considered for informational purposes only. It is important to note that trading based on GMP is speculative and should not be used for investment decisions.

Shri Ahimsa Naturals IPO Live Subscription Status

The live subscription status of the IPO as of 7:00 PM on March 27, 2025, indicates that the IPO has been subscribed 58.38 times, showcasing significant investor interest. The subscription status will continue to be updated in real-time on the NSE website.

Anchor Investors

Shri Ahimsa Naturals has raised ₹ 20.87 Crores from Anchor Investors at a price of ₹ 119 per share. The company allocated 17,54,400 equity shares to the Anchor Investors, and the list of these investors can be found on the Registrar's website. These shares are part of the Qualified Institutional Buyers (QIBs) reservation portion of the IPO.

Shri Ahimsa Naturals IPO Objectives

The company plans to utilize the net proceeds from the IPO for the following objectives:

1. ₹ 35 Crores for investment in Shri Ahimsa Healthcare Private Limited, a wholly-owned subsidiary, to set up a manufacturing facility in Sawarda, Jaipur, Rajasthan.

2. General Corporate Purposes, which could include working capital requirements and other corporate activities.

Financial Performance

Shri Ahimsa Naturals has demonstrated solid financial performance over the years. For the fiscal year ending on September 30, 2024, the company reported revenues of ₹ 5,894.23 Lakh, with a profit after tax (PAT) of ₹ 974.45 Lakh. The company's EBITDA for the same period stood at ₹ 1,438.88 Lakh. The financial growth in recent years is indicative of the company's successful operations and growing market presence.

The company has a pre-issue EPS of ₹ 10.19 and a post-issue EPS of ₹ 8.00 for FY24. The pre-issue P/E ratio is 11.68x, while the post-issue P/E ratio is 14.87x. The Return on Capital Employed (ROCE) for FY24 is 25.69%, and the Return on Equity (ROE) stands at 22.25%. These figures suggest that the IPO is fairly priced, though investors should assess the growth potential against the valuation.

IPO Review and Recommendation

Given the company’s solid financials and the fair pricing of the IPO, the investment could be an attractive opportunity for long-term growth, especially for those looking to invest in the herbal extract sector. However, with the GMP showing no listing gains and the company’s pricing relative to its financial performance, we recommend avoiding the Shri Ahimsa Naturals IPO for listing gains. For long-term investment, further research into the company’s expansion plans and market position will be necessary to make an informed decision.

The Current active IPO are Infonative Solutions Limited,Spinaroo Commercial Limited,Retaggio Industries Limited.

The Closed IPOs are  Identixweb Limited, ATC Energies System Limited, Shri Ahimsa Naturals Limited.

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