Shreeji Global FMCG Plans ₹85 Crore IPO to Fund Expansion

Shreeji Global FMCG, a company involved in agriculture commodity processing, is set to launch an Initial Public Offering (IPO) to raise ₹85 crore. The IPO will be listed on the NSE Emerge platform, offering 68 lakh equity shares with a price band of ₹120 to ₹125 per share. The subscription period is scheduled to open on Tuesday.

The net proceeds from this IPO are earmarked for crucial expansion and development activities. These include setting up a new processing plant, establishing a cold storage facility, investing in a solar power project, and bolstering the company's working capital.

Jitendra Kakkad, Managing Director of Shreeji Global FMCG, stated that the funds raised will be instrumental in enhancing production efficiency, promoting energy sustainability, and strengthening supply chain capabilities. He further added that this expansion will enable the company to broaden its product portfolio and better cater to the evolving needs of consumers.

The company operates under the brand name ‘SHETHJI’, reaching across 22 states in India and exporting to 25 international markets. Shreeji Global FMCG has already established automated spice and multigrain processing units near Rajkot and a substantial 5,000-tonne cold storage facility. Their product range includes gluten-free, high-fibre flours and various ready-to-use spice mixes such as Garam Masala, Pav Bhaji Masala, and Sambhar Masala.

For the last fiscal year, the company reported a revenue of ₹649 crore, an EBITDA of ₹20 crore, and a net profit of ₹12 crore.

Interactive Financial Services is acting as the book-running lead manager, while MUFG Intime India has been appointed as the registrar for the issue.

Impact This IPO is expected to significantly boost Shreeji Global FMCG's operational capacity and market reach, potentially leading to improved financial performance and increased shareholder value. The investment in new facilities and sustainability projects indicates a forward-looking strategy. Rating: 6/10

Difficult Terms IPO (Initial Public Offering): The first time a private company offers its shares to the public to raise capital. NSE Emerge: A platform by the National Stock Exchange of India designed for Small and Medium-sized Enterprises (SMEs). Price Band: The range within which potential investors can bid for shares in an IPO. Equity Shares: Units of ownership in a company that represent a claim on its assets and earnings. Net Proceeds: The total amount of money raised from the IPO after deducting all issue-related expenses. Working Capital: The funds a company uses for its day-to-day operational expenses. Book-running lead manager: The primary investment bank responsible for managing an IPO, including marketing and underwriting. Registrar: An entity responsible for maintaining records of shareholders and handling administrative tasks for the IPO, such as share allocation and transfers. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): A measure of a company's operating performance, excluding non-operating expenses and non-cash charges.