Shyam Dhani Industries IPO – Full IPO Overview
Shyam Dhani Industries Limited has opened its SME IPO for public subscription from Monday, 22 December 2025 to Wednesday, 24 December 2025. The issue will list on the NSE Emerge platform, a marketplace for small and medium enterprises.
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IPO Size: ₹38.49 crore (approximate at upper band)
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Price Band: ₹65 – ₹70 per equity share
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Face Value: ₹10 per share
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Total Shares Offered: ~54.98 lakh equity shares
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Lot Size: 2,000 shares (min.)
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Retail Minimum Investment: ~₹2,80,000 (4,000 shares at upper band)
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Listing Platform: NSE Emerge (SME exchange)
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Allotment Finalisation: Expected around 26 Dec 2025
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Tentative Listing Date: ~30 Dec 2025
The IPO is structured as a book-built issue with 100% fresh issuance – meaning no offer for sale component.
Company Background
Shyam Dhani Industries Limited, established in 1995 (incorporated and later converted to a public limited company), is an ISO-certified food processing and spice manufacturing company. The Jaipur-based firm produces and distributes a wide range of spices and grocery products under the brand “SHYAM”, including:
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Ground & blended spices
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Whole spices
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Herbs and seasonings
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Grocery staples like black salt, rock salt, rice, and poha
The company’s manufacturing facility is in Jatawali, Chomu, Jaipur, Rajasthan, where it processes, grades, and packages spices and related products.
Shyam Dhani uses a multi-channel distribution strategy, reaching both B2B (general trade, modern trade, Quick Commerce, HoReCa) and D2C segments, and has recently started exports to several countries.
IPO Offer Details
Allocation Breakup (Tentative)
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Anchor Investors: Up to 15,60,000 shares
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Qualified Institutional Buyers (QIB): Up to 10,44,000 shares
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Non-Institutional Investors: Not less than 7,86,000 shares
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Retail Individual Investors: Not less than 18,28,000 shares
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Market Maker: Up to 2,80,000 shares
Use of Proceeds
As per the Red Herring Prospectus, the company plans to use the IPO funds for:
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Funding incremental working capital requirements
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Repayment or prepayment of certain borrowings
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Brand creation and marketing expenses
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Capital expenditure to purchase and install new machinery
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Purchase and installation of a solar rooftop plant
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General corporate purposes
This mix highlights both operational expansion and debt reduction objectives.
Financial Overview
According to the company’s financials:
| Fiscal Year | Revenue (₹ Crore) | Profit After Tax (₹ Crore) |
|---|---|---|
| FY 2023 | ~68.10 | ~2.92 |
| FY 2024 | ~107.61 | ~6.30 |
| FY 2025 | ~124.68 | ~8.04 |
The company has shown consistent revenue and profit growth over the last three years, with an improving profit after tax trend.
Recent operating data also shows positive growth into H1 FY2026, indicating ongoing scaling of operations.
Valuation Metrics (FY2025 – approximate)
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EPS: ~₹5.41 per share
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ROE: ~34.07%
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ROCE: ~39.00%
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EBITDA Margin: ~11.65%
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Debt/Equity: ~2.00
GMP Status (Grey Market Premium)
GMP Update:
Unlisted shares of Shyam Dhani Industries have been reported trading at around ₹105, implying an unofficial Grey Market Premium of ~₹35, or ~50 % premium over the upper price band (₹70).
Interpretation:
A high GMP suggests strong positive sentiment in unofficial markets and anticipated listing gains — although GMP is not a guaranteed indicator of actual listing performance. It reflects demand enthusiasm among retail traders and brokers before the IPO closes.
IPO Analysis – Strengths & Weaknesses
Key Strengths
- Strong Growth in Financials: Revenue and profit have consistently grown over the past few years.
- Established Brand Presence: Known for a broad portfolio of spices and grocery products under “SHYAM”.
- Diversified Distribution: Multi-channel strategy with B2B, D2C, and export reach.
- IPO Proceeds Usage: Balanced between working capital, brand building, machinery upgrades, and energy efficiency projects.
- High GMP Indication: Early grey market premium suggests strong interest.
Potential Risks
- SME Segment Exposure: SME-listed stocks can be less liquid and more volatile than mainboard listings.
- High Minimum Application: Requires substantial upfront capital (₹2.8 lakh+ for retail).
- Operating Leverage: Debt-to-equity ratio is moderately high — increasing financial risk if margins compress.
- Competitive Industry: Spices and food processing is fragmented with strong branded competitors.
- GMP Variability: Grey market premiums can be misleading and change quickly.
Investment Insights
Short-Term Perspective:
A strong GMP may indicate potential listing gains, but short-term traders should watch subscription trends and allotment pressure closely — especially for SME issues, which can fluctuate widely.
Long-Term Perspective:
Investors with a longer horizon and confidence in the company’s growth strategy, branding capability, and financial improvement might consider this IPO if fundamentals align with their risk profile.
Advisory Note:
Always evaluate your risk tolerance, portfolio allocation, and consult licensed financial advisors before applying.
Conclusion
The Shyam Dhani Industries IPO (Dec 22–24, 2025) offers a compelling growth story in the food processing and spice manufacturing sector, backed by steady financial progress and a diversified product portfolio. Early GMP signals and thematic growth tailwinds in India’s branded spices industry make it an interesting SME IPO to watch — though liquidity dynamics and competitive risks should be carefully weighed.
Disclaimer:
This article is informational only and does not constitute investment advice. Market conditions can change rapidly; consult professional advisors before investing.
