GMP of Sneha Organics IPO
The IPO has attracted healthy attention in grey market, with a reported GMP of 31%, indicating a positive sentiment among investors.
IPO price band and structure
The Snehaa Organics IPO is a book build issue with a price band set at Rs 115 to Rs 122 per share. The company will be listed on the NSE SME platform, with a tentative listing date scheduled for September 5.
The total issue size is 26,79,000 shares, aggregating up to Rs 32.68 crore. Shares have been allocated to different investor categories, with 45.17% reserved for retail investors and 45.13% for non-institutional investors (NIIs).
The lot size for an application is 1,000 shares. The minimum investment for a retail investor is 2,000 shares
Company Profile and Financial Performance
Incorporated in October 2017, Snehaa Organics is a key player in the solvent recovery and recycling sector.
The company’s business model revolves around collecting spent solvents from industries and using distillation and purification technologies to process them for reuse.
It also engages in the direct trading of solvents, sourcing raw materials, assessing their quality, and selling them in the open market. The company operates a manufacturing facility in Hyderabad, Telangana, and has established a strong reputation, particularly within the pharmaceutical sector.
The company’s financial performance has shown robust growth over the last three years. Between the financial year ending FY24 and FY25, Snehaa Organics’ total income increased by 10% to Rs 26.29 crore, while its PAT experienced a rise of 101% to Rs 7.34 crore.
Objectives of the issue
The company has outlined several key objectives for the net proceeds from the IPO. These include meeting the company’s working capital requirements, which are estimated to be Rs 23.94 crore, and the repayment of loans amounting to Rs 3.50 crore.
The funds will also be used for general corporate purposes and to cover issue-related expenses. The utilization of funds for these purposes is expected to strengthen the company’s balance sheet and support its future growth initiatives in the solvent recovery industry.
Fast Track Finsec is the book running lead manager, and Skyline Financial Services is the registrar for the issue.
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