Shubhshree Biofuels Energy share price hits 5% upper circuit after listing; stock debuts with 59% premium on NSE SME

Shubhshree Biofuels Energy share price made a bumper debut on NSE SME today Shubhshree Biofuels Energy share price today opened at ₹189, which is 58.82% higher than the issue price of ₹119. Following a strong listing, the stock was locked-in 5% upper circuit.

The initial public offering (IPO) of Shubhshree Biofuels Energy had a subscription period that ran from Monday, September 9 until Wednesday, September 11. With a face value of ₹10, shares in the Shubhshree Biofuels Energy IPO are priced between ₹113 and ₹119. At least 1,200 of those shares are up for bid, and there are multiples of those shares available. Shubhshree Biofuels Energy IPO subscription status was 132.89 times on the last day of bidding, according to chittorgarh.com.

The company's operations involve producing and distributing biomass fuels, such as biomass briquettes and pellets. These biomass fuels are an alternative energy source that are mostly utilised in place of fossil fuels including coal, firewood, lignite, agri-waste, and others for commercial and industrial heating, cooking fuel, industrial burning, and power production. The majority of uses for briquettes are industrial, such as operating boilers, while the majority of uses for pellets are either commercial or as cooking fuel. These pellets and briquettes are presently being sold by the company to clients that work in the recycling, textile processing, pharmaceutical, metal, etc. industries.

In its red herring prospectus (RHP), the company mentioned that there are no listed companies in India involved in a similar business as theirs, so an industry comparison for their company is not feasible.

Between March 31, 2024, and March 31, 2023, Shubhshree Biofuels Energy Limited's profit after tax (PAT) climbed by 36% and revenue increased by 59%, respectively.

Shubhshree Biofuels Energy IPO details

The Shubhshree Biofuels Energy IPO, valued ₹16.56 crore, includes a fresh issuance of 1,392,000 equity shares with a face value of ₹10. There is no "offer for sale" component.

The business plans to use the issue's proceeds for the following purposes: general corporate purposes, funding capital expenditures for the installation of new equipment and plant, and meeting working capital needs.

The Shubhshree Biofuels Energy IPO has Hem Securities Limited serving as the book running lead manager, with Bigshare Services Pvt Ltd acting as the issue's registrar. Additionally, Hem Finlease is the market maker for the Shubhshree Biofuels Energy IPO.

Shubhshree Biofuels Energy IPO GMP today

Shubhshree Biofuels Energy IPO GMP today is +75. This indicates Shubhshree Biofuels Energy share price were trading at a premium of ₹75 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Shubhshree Biofuels Energy share price was indicated at ₹194 apiece, which is 63.03% higher than the IPO price of ₹119.

'Grey market premium' indicates investors' readiness to pay more than the issue price.'

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