Shyam Dhani Industries IPO Draws Massive Attention Ahead of Listing, Grey Market Signals Strong Upside

Even before making its debut on the stock exchanges,has firmly captured the spotlight in the SME IPO space. The company’s public issue, which opened for subscription today, is already being discussed widely among investors and market watchers, largely due to its exceptional performance in the grey market.

Among all SME IPOs currently open or recently announced this month, Shyam Dhani Industries is emerging as the strongest performer in unofficial trading. Grey Market Premium (GMP) trends are pointing toward a potential upside of over 67% compared to the issue price—an indication of strong investor enthusiasm even before the listing.

Grey Market Buzz Signals Strong Listing Expectations

Market participants in the unofficial trading space are showing heavy interest in the IPO. As of Monday afternoon, Shyam Dhani Industries shares were commanding a grey market premium of around ₹47 per share. Based on this premium, the stock is being expected to list near ₹117, against the upper issue price of ₹70.

If these projections play out on listing day, investors could witness gains of more than two-thirds over the issue price. Such elevated GMP levels usually reflect strong demand, optimistic sentiment, and expectations of healthy debut performance—especially common in SME IPOs that combine growth visibility with solid financials.

That said, seasoned investors are aware that grey market trends are sentiment-driven and can change quickly as listing day approaches.

IPO Snapshot: Key Details at a Glance

Here are the main highlights of the Shyam Dhani Industries IPO:

• Issue Size: ₹38.49 crore
• Issue Type: 100% Fresh Issue
• Price Band: ₹65 to ₹70 per share
• Face Value: ₹10 per share
• Lot Size: 2,000 shares
• Minimum Application: 2 lots (4,000 shares)
• Minimum Investment Amount: ₹2.80 lakh
• IPO Closing Date: 24 December
• Expected Listing Date: 30 December
• Anchor Investment Raised: ₹10.92 crore

Retail investors are required to apply for a minimum of two lots, and the maximum application size is also capped at two lots. In case of non-allotment, the application money will be refunded in line with SEBI guidelines.

What Kind of Returns Are Investors Expecting?

Based on the prevailing grey market estimates, an investor who receives the maximum permissible allotment could potentially see listing gains of around ₹1.88 lakh, assuming the stock lists near grey market expectations.

While GMP is not an official or guaranteed indicator, it often acts as a sentiment gauge ahead of listing and gives investors a rough idea of how the market is viewing the issue.

Business Overview: What Does Shyam Dhani Industries Do?

Shyam Dhani Industries operates in the fast-growing packaged food and spices segment. The company is engaged in the manufacturing and marketing of spices and grocery products under its well-recognised ‘Shyam’ brand. It is an ISO-certified company with a wide and diversified product portfolio.

The company offers more than 160 varieties of spices, catering to both household and commercial demand. Beyond spices, its product range also includes:

• Black salt
• Rock salt
• Rice
• Poha
• Kasuri methi
• Ready seasoning and spice mixes

With Indian consumers increasingly shifting toward branded and hygienically packaged food products, the company is well-positioned to benefit from changing consumption patterns.

Strong Financial Performance Builds Investor Confidence

One of the key reasons behind the strong interest in this IPO is the company’s improving financial track record. In FY2025, Shyam Dhani Industries delivered robust growth across key metrics:

• Revenue: ₹124.75 crore, marking a year-on-year growth of 16%
• Profit After Tax (PAT): ₹8.04 crore, up 28%
• EBITDA Margin: Approximately 11.7%
• Return on Equity (ROE): Over 41%

Such healthy profitability ratios and consistent earnings growth enhance the company’s appeal, particularly within the SME segment where investors often look for scalable businesses with improving margins.

How the IPO Proceeds Will Be Used

The funds raised through the IPO will be deployed to support the company’s expansion and strengthen its balance sheet. Key areas of utilisation include:

• Purchase and installation of new machinery
• Setting up a solar rooftop power system to reduce energy costs
• Partial repayment of existing borrowings
• Meeting incremental working capital requirements

These initiatives are expected to improve operational efficiency, lower costs, and support long-term growth.

Final Thoughts for Investors

Shyam Dhani Industries IPO appears to tick many of the boxes that typically attract SME IPO investors—strong grey market demand, improving financials, a diversified product portfolio, and exposure to a growing consumer sector. However, it is important to remember that SME stocks can be volatile, and grey market premiums are speculative by nature.

Disclaimer

This article is for informational purposes only and should not be considered investment advice. IPO investments are subject to market risks. Investors are advised to evaluate their risk profile and consult certified financial advisors before making any investment decisions.