Sacheerome IPO to debut today on NSE SME platform. Here's what GMP indicates

Synopsis

Sacheerome's SME IPO is set for listing on June 16. The IPO saw massive oversubscription across all investor categories. The price was fixed at Rs 102 per share. The company plans to use the funds for a new manufacturing unit. Sacheerome specializes in fragrances and flavors for the FMCG sector. The company reported strong revenue and profit growth for FY25.

The SME IPO of Sacheerome, a fragrance and flavour manufacturer, is all set to list on June 16 on the NSE SME platform after a blockbuster response during the subscription window. The Rs 61.62 crore issue was open between June 9 and June 11, and saw heavy demand across investor categories.

The issue was oversubscribed by 312.94 times, with the non-institutional investors (NIIs) category witnessing an 808.56x subscription. The qualified institutional buyers (QIBs) subscribed 173.15x, while the retail investors (RIIs) subscribed 180.28x.

The price band was fixed at Rs 102 per share. Ahead of the listing, the company's shares were trading with a grey market premium (GMP) of Rs 24 with an expected listing price pegged at around Rs 126, implying 23% gain per share on debut.

The IPO was a 100% fresh issue of 60.40 lakh shares, and proceeds will be used primarily for setting up a new manufacturing facility in Greater Noida, and to meet general corporate purposes.

Sacheerome specializes in creating cosmetic and industrial fragrances, food flavours, and essence extracts for the B2B FMCG sector.

The company supplies its products across categories like personal care, home care, oral hygiene, beverages, dairy, confectionery, and seasonings. It also exports to the Middle East and African markets, with a headcount of 153 employees as of September 2024.

Financially, Sacheerome reported revenue of Rs 108.13 crore and net profit of Rs 15.98 crore for FY25, marking a 25% and 50% year-on-year growth.

The IPO was managed by GYR Capital Advisors as the lead manager and MUFG Intime India as the registrar. The listing will be closely watched by investors and analysts alike as a barometer of appetite for quality SME issues in the current market.

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