Sheetal Universal IPO to Open on December 4; Check Price Band, GMP, Other Key Details
Sheetal Universal IPO
Sheetal Universal Limited, a Rajkot-based agricultural commodity supplier, is poised to launch its SME IPO on December 4.
This Initial Public Offering is designed to provide investors with an opportunity to be part of the company’s growth journey.
The bidding window will remain open until December 6, allowing potential investors to participate. This SME IPO is distinctive in its focus on agricultural products, featuring a price band fixed at Rs 70 per share.
Company Background
Established in 2015, Sheetal Universal has carved a niche for itself in the agricultural sector.
The company is primarily engaged in the sourcing, processing, and supplying of a diverse range of agricultural products, including peanuts, sesame, spices, and grains.
With a commitment to quality and innovation, Sheetal Universal has become a notable player in the industry.
IPO Details
The size of Sheetal Universal’s IPO is Rs 23.80 crore, making it a significant milestone for the company’s financial development.
This IPO is unique in that it is a completely fresh issue, involving the issuance of 34 lakh equity shares. Notably, there will be no offer-for-sale (OFS) component in this offering.
The decision to issue 34 lakh equity shares underscores the company’s confidence in its growth prospects.
Investment Parameters
Investors looking to participate in the Sheetal Universal IPO can do so in lots of 2000 shares. The allocation structure is designed to accommodate both retail and other investors, with 50% of the shares reserved for retail investors and the remaining 50% for other categories of investors.
This balanced allocation aims to ensure widespread participation and a fair distribution of shares.
Key Players in the IPO Process
Book Running Lead Manager
Beeline Capital Advisors Pvt Ltd has been appointed as the book running lead manager for the Sheetal Universal IPO.
Their role is crucial in overseeing and managing the entire IPO process, ensuring a seamless transition from the bidding phase to the listing on the stock exchange.
Registrar
BigShare Services Private Limited has been designated as the registrar for the Sheetal Universal IPO. Registrars play a pivotal role in maintaining accurate records of shareholders and facilitating the distribution of shares during the IPO and subsequent listing.
IPO Timeline and Expected Listing Date
Upon the conclusion of the bidding period on December 6, the listing of Sheetal Universal shares is anticipated to take place on NSE Emerge on December 11.
This timeline signifies a swift transition from the IPO phase to the commencement of trading in the secondary market.
Market Sentiment and Grey Market Premium
According to reports, there is a positive market sentiment surrounding the Sheetal Universal IPO. The company’s shares are reportedly trading at a premium of Rs 7 over the IPO price in the grey market. This premium suggests a favorable outlook and strong investor interest in the upcoming IPO.
Utilization of IPO Proceeds
The funds raised from the public issue, amounting to Rs 23.80 crore, are earmarked for specific purposes aimed at enhancing the company’s operations and market presence. The key areas of utilization include:
- Capital Expenditure: Sheetal Universal plans to allocate a portion of the IPO proceeds towards capital expenditure. This could involve investments in infrastructure, technology, and other assets to support the company’s expansion plans.
- Working Capital Needs: A portion of the funds will be dedicated to meeting the company’s working capital requirements. Adequate working capital is essential for the smooth day-to-day operations of the business.
- General Corporate Purposes: The IPO proceeds will also be deployed for general corporate purposes. This may include debt repayment, strategic initiatives, and other activities that contribute to the overall stability and growth of the company.
Diversification Plans and Product Expansion
In addition to addressing immediate financial needs, Sheetal Universal has strategic plans for diversification and product expansion. The company aims to venture into new product categories, including:
- Protein Powder: Sheetal Universal intends to introduce protein powder as part of its product portfolio. This move aligns with the growing consumer demand for health and wellness products.
- Cold Press Extract Oil: Another noteworthy expansion involves the extraction of cold press oil from raw peanuts, almonds, cashews, and seeds. Cold press extraction is known for preserving the natural properties of the oils, catering to health-conscious consumers.
Manufacturing Plant Setup
To support the new product initiatives, Sheetal Universal plans to establish a new manufacturing plant. This facility will be dedicated to the production of defatted protein powder and the extraction of cold press oil.
The strategic setup of this plant underscores the company’s commitment to quality manufacturing and meeting the evolving needs of the market.
Final Remarks
Sheetal Universal Limited’s SME IPO represents not only a financial milestone for the company but also an opportunity for investors to participate in the growth of a dynamic player in the agricultural sector.
The IPO’s unique features, coupled with the company’s strategic plans for diversification and expansion, make it an attractive proposition for investors looking to be part of a forward-looking and innovative enterprise.
As the IPO unfolds and subsequently lists on NSE Emerge, the market will keenly observe Sheetal Universal’s journey and its impact on the agricultural commodities landscape.
