Shyam Dhani Industries IPO Sees Strong Response on Day 2, Subscription Crosses 241x, GMP Rises to 88%

The SME initial public offering of spices and food products manufacturer Shyam Dhani Industries Limited continued to attract strong investor interest on the second day of bidding. By the end of Day 2, the issue was subscribed over 241 times, reflecting robust demand across investor categories. Alongside the strong subscription trend, enthusiasm in the grey market also remained high, with the grey market premium rising to nearly 88 percent.

The IPO of Shyam Dhani Industries opened for subscription on December 22 and will remain open until December 24. The company has fixed the price band for the issue at Rs 65 to Rs 70 per share. Through this SME IPO, the company aims to raise around Rs 38.48 crore by issuing approximately 54.98 lakh shares. The strong response received in the first two days has placed the issue among the most actively subscribed SME offerings in recent times.

Subscription data indicates strong participation from retail investors, who showed significant interest in the issue. Non-institutional investors also contributed substantially to the demand, while qualified institutional buyers participated steadily, supporting the overall subscription figures. The broad-based participation across investor categories has helped push the total subscription to multi-fold levels within a short span.

In the grey market, demand for Shyam Dhani Industries shares has continued to strengthen. Market sources indicated that the grey market premium, which stood at lower levels earlier, rose sharply to around 88 percent on the second day of the issue. This suggests that investors in the unofficial market are expecting the shares to list at a substantial premium over the issue price.

Shyam Dhani Industries Limited is a Jaipur-based company engaged in the manufacturing and marketing of spices and food products. The company operates under the ‘SHYAM’ brand and offers a range of products including ground spices, blended spices and whole spices. Over the years, the company has expanded its presence in both domestic and export markets, which has contributed to growing investor confidence.

The company plans to utilise the proceeds from the IPO to meet its working capital requirements, repay existing borrowings and support business expansion and operational needs. Market participants believe that the combination of strong subscription numbers and a rising grey market premium reflects positive sentiment around the issue, although post-listing performance will depend on market conditions and liquidity in the SME segment.