Srivari Spices and Foods, a flourishing enterprise specializing in spices and flour from South India, has successfully marked its entry on the SME platform of NSE. The company’s Initial Public Offering (IPO) garnered an impressive response from investors, becoming the most subscribed IPO of the year, with an overwhelming 450.03 times subscription rate.
Impressive IPO Response: Most Subscribed of the Year
The IPO, valued at Rs 9 crore, was open for subscription from August 7th to 9th. Notably, Qualified Institutional Buyers (QIBs) subscribed 79.10 times, Non-Institutional Investors (NIIs) subscribed 786.11 times, and Retail investors subscribed 517.95 times. The issue comprised 21.42 lakh new shares with a face value of Rs 10. The capital raised through this issuance is earmarked for the company’s working capital necessities and general corporate objectives.
Subscription Details and Capital Raised
Established in 2019, Srivari Spices & Foods operates within the spices and flour domain, serving both traders and direct consumers. Its operational scope predominantly covers Telangana and Andhra Pradesh. The company distributes spices to over 3,000 retail outlets and wheat products to more than 15,000 outlets in these regions. It operates two manufacturing units, situated in Jalapalli village and Faruknagar mandal, both in the Ranga Reddy district of Telangana.
Financial Growth and Health
The company’s financial trajectory has been noteworthy. While it recorded a net loss of Rs 10.69 lakh in the financial year 2020, it swiftly rebounded. Subsequently, its net profit surged to Rs 35.26 lakh in FY 2021, further escalating to Rs 72.84 lakh in FY 2022, and culminating in an impressive Rs 3.13 crore in FY 2023. This consistent growth reflects the company’s robust financial health and progressive business strategy.