Shri Ahimsa Naturals IPO booked 2.84 times so far on day 2; Strengths, risks and key things to know

Shri Ahimsa Naturals IPO has been subscribed 2.4 times so far on Wednesday, the second day of bidding.

Shri Ahimsa Naturals IPO: 10 key things to know

• Shri Ahimsa Naturals subscription period: The initial public offer, which went live on March 25, will conclude on March 27.
• IPO offer structure: The ₹73.81 crore initial share sale is a mix of a fresh issue of 42.04 lakh shares and an offer for sale of 19.99 lakh shares.
• Shri Ahimsa Naturals IPO price band: The price range has been fixed at ₹113 to ₹119 per share.
• Issue type: Book-built issue
• Objective: The net proceeds from the issue will be used to invest in a wholly owned subsidiary, Shri Ahimsa Healthcare Pvt Ltd, to establish a manufacturing facility and for general corporate purposes.
• Shri Ahimsa Naturals IPO lot size: Retail investors can apply for a minimum of 1,200 shares for ₹1,35,600.
• Financials: The company's net profit declined 51.1% to ₹18.67 crore in the financial year 2023-24, compared to ₹38.21 crore in the previous fiscal. Revenue fell 25.85% year-on-year (YoY) to ₹78.7 crore in FY24.
• Book-running lead manager and registrar: Srujan Alpha Capital Advisors Llp is the IPO's book-running lead manager, while the registrar is Cameo Corporate Services Ltd.
• Allotment date: The basis of allotment is likely to be finalised on March 28.
• Listing date: The listing on the NSE SME platform Emerge will occur on April 2.

Shri Ahimsa Naturals IPO: Strengths

• The company has experienced promoters and a management team.
• Its manufacturing plant is supplemented by its in-house research and development (R&D) and quality lab.
• Shri Ahimsa Naturals has established long-term relationships with its clients.

Shri Ahimsa Naturals IPO: Risks

• The main objective of the issue is to invest in a wholly owned subsidiary to set up a manufacturing unit. The proposed project may be subject to risks of cost overruns or delays, which could affect revenue.
• The company's top 10 customers contributed 93.66% to the company's revenue in the financial year 2023-24. Losing any major client could affect the company's finances.
• It is dependent on third-party suppliers for raw materials. Any delay in getting raw materials can affect business and financial conditions.

Shri Ahimsa Naturals processes crude caffeine procured from decaffeination plants located in Vietnam, Mexico, etc.