ShubhShree Biofuels Energy Ltd has established itself as a leader in Biomass Supply Chain Management in India since 2021, contributing significantly to sustainable energy practices across the country. The company is now taking a major step by offering its Initial Public Offering (IPO), opening for subscription on September 09, 2024, and closing on September 11, 2024. This IPO is poised to attract significant investor interest due to its strong financial performance and innovative technology in biomass management.

The IPO consists entirely of a Fresh Issue of 13.92 Lakh Shares amounting to ₹16.56 Crores, providing investors an exciting opportunity to become part of a rapidly growing company. The price band for this IPO is set between ₹113 to ₹119 per equity share, with a minimum lot size of 1,200 shares. For retail investors, the minimum investment amounts to ₹142,800, while High-Net-Worth Individuals (HNIs) are required to invest a minimum of ₹285,600 for two lots.

With HEM Securities Limited serving as the book-running lead manager and BIGSHARE Services Private Limited as the registrar, the IPO is backed by established market players, providing confidence to potential investors. Additionally, Hem Finlease Private Limited will act as the Market Maker, further ensuring a smooth transaction process during the IPO phase.

Grey Market Premium (GMP) Insights:

As of the latest updates, the Grey Market Premium (GMP) for ShubhShree Biofuels Energy is projected to range between ₹90 to ₹100 per share, highlighting the potential for substantial listing gains. However, it is essential to note that GMP is an informal indicator and does not represent the true price discovery of the shares. It reflects demand and supply in the unregulated market, providing an indication of how the IPO might perform once listed. While GMP can be informative, it is advisable to base investment decisions on fundamental factors such as the company's financial performance and growth trajectory.

Live Subscription Status:

Investors can track the live subscription status from the opening date, September 09, 2024. This information will provide a real-time overview of how the IPO is being received by retail investors, institutional investors, and HNIs. As the subscription window narrows, interest and demand for the IPO may surge, making it a crucial factor to consider for timely investment decisions.

Financial Highlights and Performance:

ShubhShree Biofuels Energy has shown a consistent upward trend in its financials over the past few years. From a modest revenue of ₹791.83 Lakhs in FY22, the company experienced an impressive growth surge, achieving ₹5,971.24 Lakhs in FY23 and an even more substantial ₹9,488.32 Lakhs in FY24. Similarly, EBITDA rose significantly from ₹34.21 Lakhs in FY22 to ₹225.46 Lakhs in FY23 and ₹415.82 Lakhs in FY24, demonstrating operational efficiency.

The company’s Profit After Tax (PAT) also exhibited robust growth, rising from ₹27.46 Lakhs in FY22 to ₹242.38 Lakhs in FY23 and further to ₹329.77 Lakhs in FY24. This steady financial performance reinforces investor confidence in the company's ability to scale and generate long-term value.

Key financial metrics include a Return on Capital Employed (ROCE) of 61.67% and a Return on Equity (ROE) of 68.15% for FY24, which are indicators of a strong financial foundation. The company’s shares are being offered at a pre-issue EPS of ₹8.60 and a post-issue EPS of ₹8.56, with the pre-issue P/E ratio standing at 13.83x and post-issue P/E ratio at 13.90x.

IPO Allotment and Listing Details:

The allotment for ShubhShree Biofuels Energy is expected to be finalized by Thursday, September 12, 2024. Investors can easily check their allotment status by visiting the registrar’s website or using their PAN number, application number, or DP Client ID. Following the allotment, the shares are scheduled to be listed on the NSE SME platform with a tentative listing date of September 16, 2024.

IPO Objectives:

The proceeds from the fresh issue will be utilized for the following objectives:

₹212.52 Lakhs to be allocated for capital expenditure related to the installation of new plant and machinery.

₹900.00 Lakhs to support the company’s working capital requirements.

Remaining funds will be used for general corporate purposes.

Investment Review:

Given the company's leadership in biomass supply chain management, its focus on sustainability, and its innovative technology, ShubhShree Biofuels Energy appears to be a solid investment opportunity for both listing gains and long-term growth. The company’s strong financials, steady growth trajectory, and high ROCE and ROE metrics suggest that the IPO is fairly priced and offers considerable potential.

In conclusion, ShubhShree Biofuels Energy is set to make a significant mark in the stock market. Investors are recommended to apply for this IPO, either for listing gains or as a long-term investment in a sustainable future.

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