The Shubhshree Biofuels Energy IPO has garnered significant attention due to its potential in the growing biofuel industry. This SME IPO aims to raise ₹16.56 crores through a book-built issue and will open for subscription on September 9, 2024. Investors are curious about the Grey Market Premium (GMP), price band, allotment status, and expected returns. In this article, we provide a detailed review of the IPO, focusing on the company’s financials, market presence, and growth potential.
Shubhshree Biofuels Energy IPO Details
| Detail | Information |
|---|---|
| IPO Open Date | September 9, 2024 |
| IPO Close Date | September 11, 2024 |
| Face Value | ₹10 Per Equity Share |
| IPO Price Band | ₹113 to ₹119 Per Share |
| Issue Size | ₹16.56 Crores |
| Fresh Issue | ₹16.56 Crores |
| Offer for Sale | N/A |
| Issue Type | Book Built Issue |
| Listing | NSE SME |
| Retail Quota | 35% |
| QIB Quota | 50% |
| NII Quota | 15% |
This IPO will help Shubhshree Biofuels Energy meet its capital expenditure needs, expand its capacity, and provide working capital for future projects. The focus on biomass fuel supply is aligned with India’s shift toward cleaner energy solutions, positioning the company well for long-term growth.
Shubhshree Biofuels Energy IPO Market Lot
For investors interested in the IPO, the market lot is as follows:
| Investor Type | Lot Size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 1 Lot | 1200 Shares | ₹142,800 |
| Retail Maximum | 1 Lot | 1200 Shares | ₹142,800 |
| HNI Minimum | 2 Lots | 2400 Shares | ₹285,600 |
The minimum application size is 1200 shares, requiring an investment of ₹142,800 for retail investors.
Shubhshree Biofuels Energy IPO Dates
The key dates for the IPO are crucial for investors planning their strategies:
| Event | Date |
|---|---|
| IPO Open Date | September 9, 2024 |
| IPO Close Date | September 11, 2024 |
| Basis of Allotment | September 12, 2024 |
| Refunds | September 13, 2024 |
| Credit to Demat Account | September 13, 2024 |
| IPO Listing Date | September 16, 2024 |
The listing will occur on NSE SME, offering early investors an opportunity to trade shares post-allotment.
About Shubhshree Biofuels Energy
Founded in 2013, Shubhshree Biofuels Energy initially focused on producing building materials like fly ash bricks. However, the company later pivoted toward biomass fuel production, specializing in biomass pellets and briquettes used for heating, cooking, and power generation. Currently, the company sells over 1.2 lakh metric tons of biofuel annually, with a strong market presence in the Northern States of India.
Shubhshree Biofuels Energy Financial Report
The company’s financial growth in recent years has been impressive:
| Year | Revenue | Profit After Tax | Assets |
|---|---|---|---|
| 2021 | ₹0.19 Crores | ₹0.02 Crores | ₹0.48 Crores |
| 2022 | ₹7.92 Crores | ₹0.27 Crores | ₹1.86 Crores |
| 2023 | ₹59.71 Crores | ₹2.42 Crores | ₹5.93 Crores |
The rapid growth in revenue from ₹7.92 crores in 2022 to ₹59.71 crores in 2023 indicates the company’s increasing market share in the biofuel industry. Its profit after tax (PAT) also reflects a positive trend, showing long-term potential for investors.
Valuation and Financial Metrics (FY2023)
Key valuation figures include:
| KPI | Value |
|---|---|
| ROE | 179.13% |
| ROCE | 94.45% |
| EBITDA Margin | 3.85% |
| PAT Margin | 4.14% |
| Debt to Equity | 0.36 |
| EPS (Basic) | ₹6.30 |
| Net Asset Value | ₹10.21 |
With strong financial metrics like Return on Equity (ROE) at 179.13% and Return on Capital Employed (ROCE) at 94.45%, the company demonstrates its profitability and operational efficiency. These figures make the IPO attractive for long-term investment.
Grey Market Premium (GMP) and Market Sentiment
Although the Shubhshree Biofuels Energy IPO GMP has not been confirmed as of today, it is expected to reflect market demand as the IPO date approaches. The GMP (Grey Market Premium) plays an important role in assessing investor sentiment before listing. Keep an eye on the latest Shubhshree Biofuels Energy IPO GMP Updates to stay informed about market conditions.
Objects of the Issue
The objectives of the IPO include:
- Funding capital expenditure for installing additional machinery.
- Meeting working capital requirements.
- General corporate purposes.
The capital raised through this IPO will primarily fuel business expansion and operational efficiency, making it a well-timed offering for growth.
How to Apply for Shubhshree Biofuels Energy IPO?
Investors can apply for the IPO through the following methods:
- ASBA (Application Supported by Blocked Amount) through their bank account.
- UPI via stock brokers.
- Offline Application through stock brokers by filling out the form.
Ensure you follow the application process in line with your preferred method.
Shubhshree Biofuels Energy IPO FAQs
- What is the Shubhshree Biofuels Energy IPO Date?
The IPO opens on September 9, 2024, and closes on September 11, 2024. - What is the Shubhshree Biofuels Energy IPO Price?
The price band is set at ₹113 to ₹119 per share. - What is the Allotment Date for Shubhshree Biofuels Energy IPO?
The allotment will be finalized on September 12, 2024. - What is the expected return from Shubhshree Biofuels Energy IPO?
While returns depend on market performance, the IPO is promising due to strong financials. - How to check Shubhshree Biofuels Energy IPO Allotment Status?
You can check the allotment status on the Bigshare Services IPO status page. - What is the Grey Market Premium for Shubhshree Biofuels Energy IPO?
The GMP will be updated as the IPO nears its opening date.
Conclusion
The Shubhshree Biofuels Energy IPO presents a unique opportunity for investors to gain exposure to the rapidly growing biofuel sector. With a strong financial background, clear objectives, and promising market presence, this IPO could be an attractive option for those looking for long-term investments.
For more details on upcoming IPOs, visit our Upcoming IPOs page. You can also stay updated with the latest IPO Grey Market Premium.
