Khyati Global Ventures hits lower circuit after listing at 6% premium on BSE SME; check details

Shares of small and medium enterprise (SME) Khyati Global Ventures Ltd. made a muted trading debut on Friday, October 11. The stock listed at a 6% premium on the BSE SME platform.

Khyati Global Ventures stock opened the session at ₹105 apiece, up 6.1% compared to its initial public offering (IPO) price of ₹99 per share. However, within minutes of trade, the share price fell 5% to hit the lower circuit limit at ₹99.75 apiece.

Since the minimum bid quantity to apply for the Khyati Global Ventures IPO was 1,200 shares, successful bidders who were allotted shares in the primary issue would have managed listing gains of ₹7,200 (₹6 x 1,200) per lot as soon as the stock started trading on exchanges.

The tepid listing did not come as a shock, as the ₹18.30-crore Khyati Global Ventures IPO received an underwhelming response when it was open for bidding from October 4 to October 8.

At a time when SME IPOs garnered subscription figures that ran into hundreds of times, the Khyati Global Ventures IPO was oversubscribed just around 15 times during the three-day bidding period. The company had received bids for 2.7 crore shares compared with 17.5 lakh shares on offer.

The retail investors’ portion was oversubscribed 25 times, while the non-institutional investors’ (NIIs) category was overbooked more than five times.

Khyati Global Ventures IPO details

The Khyati Global Ventures IPO was a fixed price issue, with shares being offered at ₹99 apiece in a lot size of 1,200 units. The issue was a combination of fresh issuance of 10.48 lakh shares, aggregating to ₹10.38 crore, and an offer-for-sale (OFS) of 8 lakh shares, aggregating to ₹7.92 crore.

The company has proposed using the net proceeds from the fresh issuance to fund working capital requirements and for general corporate purposes. Proceeds from the OFS would, meanwhile, go to the selling shareholders.

About Khyati Global Ventures

Incorporated in 1993, Khyati Global Ventures Ltd was formerly known as Khyati Advisory Services Ltd. The company is currently an exporter and re-packer of FMCG products that include sub-categories of food and non-food products, household products, and festive handicrafts. The company also deals in pharmaceutical products.

Its client base includes wholesalers and importers operating a chain of supermarkets in foreign countries. Khyati Global Ventures deals in globally recognised Indian brands such as Everest, Parle G, MDH, Fortune, Aashirvaad, Gowardhan, Balaji Wafers, Haldiram’s, Himalaya, Dove, Colgate, Unilever, Godrej, etc. as well as locally manufactured products.

Khyati Global Ventures’ revenue increased by 9% to ₹104.6 crore in FY 2023-24 compared with ₹96.2 crore in FY 2022-23. During the first quarter of FY 2024-25, revenue stood at ₹27.2 crore.

Profit after tax (PAT), meanwhile, rose 23% to ₹2.5 crore in FY24 compared with ₹2.05 crore in FY23. For Q1 FY25, PAT was recorded at ₹94.7 lakh.