NSE SME Srivari Spices and Foods sees strong debut

Shares of Srivari Spices and Foods were trading at Rs 105 on the NSE, a premium of 150% compared with the issue price of Rs 42.

The scrip was listed at Rs 101.50, at a premium of 141.67% to the issue price. The scrip hit a high of Rs 106.55 and a low of Rs 101.50. About 11.01 lakh shares of the company changed hands at the counter.

The initial public offer (IPO) of Srivari Spices and Foods was subscribed 300.06 times. The issue opened for bidding on 7 August 2023 and it closed on 9 August 2023. The price band of the IPO was fixed at Rs 40-42 per share.

The IPO comprised fresh issue of 21,42,000 shares. The company intends to utilize the net proceeds for funding the working capital requirements and general corporate purposes.

Ahead of the IPO, Srivari Spices and Foods on 5 August 2023, raised Rs 2.54 crore from anchor investors. The board allotted 6,06,000 shares at Rs 42 per share to 2 anchor investors.

Srivari Spices and Foods engaged in the business of manufacturing spices and flour (chakki atta) and market & sell it in and around Telangana and Andhra Pradesh. Its business has two model first is direct to customer (D2C) in nature, wherein they deliver their products directly at the doorstep of their customers using approximately 15,000 retail stores. Secondly it also works in business to business (B2B), wherein they deliver products to the suppliers. As on 31 March 2023, the company has total 94 employees.

The company recorded a revenue from operations of Rs 35.81 crore and net profit of Rs 3.12 crore for the period ended as on 31 March 2023.

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