Sacheerome is listed on NSE SME at ₹153 price with a 50% premium over the issue price

The fragrances and flavours manufacturer, Sacheerome Limited, has made a robust debut on the NSE SME platform. After closing its IPO bidding between June 9 - June 11, 2025, the company made its stock market debut on June 16, 2025, at a 50% premium to the issue price, delivering exceptional returns to investors. This book-building IPO raised ₹61.62 crore with an extraordinary subscription of 312.94 times, marking a remarkable milestone for India's fragrances and flavours sector as the company aims to establish a cutting-edge manufacturing facility at YEIDA with advanced R&D capabilities.

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Sacheerome IPO Listing Details

Sacheerome Limited launched its IPO through the book-building process, and the Sacheerome stock price was set at ₹102 per share. The minimum investment required was 1,200 shares costing ₹1,22,400. The IPO received an overwhelming response with an extraordinary subscription of 312.94 times - retail segment at 180.28 times, QIB at 173.15 times, and NII at a massive 808.56 times by the final day of bidding, indicating phenomenal investor interest across all categories. Sacheerome share price is listed at ₹153 on NSE SME, offering a 50% premium over the issue price. Sacheerome's stock price debut reflects exceptional market sentiment and strong investor confidence in the company's growth prospects.

Listing Price: The Sacheerome share price opened at ₹153 on NSE SME on June 16, 2025, representing a premium of 50% over the issue price of ₹102, providing substantial gains to investors at listing.

First-Day Trading Performance Outlook

Sacheerome IPO commenced trading on NSE SME on June 16, 2025, witnessing a stellar stock market debut. The Sacheerome share price opened at ₹153, marking a 50% premium over its IPO price of ₹102, delivering exceptional returns to investors at listing. The company entered the market with established operations in fragrances and flavours manufacturing, serving prominent FMCG players across domestic and international markets, and maintaining a diverse product portfolio catering to personal care, home care, food and beverage industries.

Market Sentiment and Analysis

Sacheerome Limited, incorporated in June 1992, operates as a creative entity specialising in designing and manufacturing fragrances and flavours. The company's product portfolio encompasses cosmetic fragrances, industrial fragrances, perfumes, food additives, and flavouring essences, serving the B2B FMCG segment. Operating with 153 employees across various departments, the company serves leading firms in India and exports to the Middle East (UAE) and African markets, maintaining strong research and development capabilities with efficient quality control and regulatory compliance systems.

Performance Indicators: Performance Indicators: Sacheerome demonstrated exceptional financial performance with revenue growth of 25% to ₹108.13 crore in FY25 and remarkable profitability improvement with PAT surging 50% to ₹15.98 crore, showcasing strong business momentum and operational efficiency.

Growth Drivers and Challenges

Sacheerome presents significant growth potential with its established expertise in fragrances and flavours manufacturing, strong R&D capabilities, and expanding market presence across diverse industries. The rising demand for premium fragrances and natural flavours, driven by the growing FMCG sector and consumer preferences, supports its business prospects. However, the company faces challenges including intense competition in the fragmented fragrances and flavours market, concerns about the sustainability of recent profit surge noted by analysts, and the need for continuous innovation to maintain a competitive edge.

Growth Drivers:

• Diversified Product Portfolio: Comprehensive range of fragrances for personal care, home care, fine fragrances, and flavours for beverages, bakery, confectionery, and dairy products
• Strong R&D Infrastructure: Advanced research and development capabilities with plans for establishing a Manufacturing, Research & Innovation Centre at YEIDA facility
• Established Market Presence: Serving prominent FMCG players across domestic and international markets with export presence in the Middle East and African markets
• Financial Performance Excellence: Outstanding revenue growth of 25% and PAT surge of 50% in FY25, demonstrating strong business momentum
• Quality Standards: Efficient quality control, assurance and regulatory compliance systems ensuring product excellence and customer satisfaction

Challenges:

• Intense Market Competition: Operating in a highly competitive and fragmented fragrances and flavours market with pressure from established players and pricing challenges
• Profit Sustainability Concerns: Analysts are noting concerns about the sustainability of recently boosted profits and aggressive pricing of the issue
• Raw Material Sourcing: Dependency on efficient sourcing of raw materials and global supply chain management affects the cost structure
• Regulatory Compliance: Need for continuous adherence to evolving regulatory requirements across different markets and product categories

Utilisation of IPO Proceeds

Sacheerome plans to utilise the ₹61.62 crore raised from the fresh issue to establish state-of-the-art infrastructure and support strategic business expansion.

• New Manufacturing Facility: ₹56.5 crore allocated for setting up a new manufacturing facility at YEIDA, Gautam Buddha Nagar, UP, including Manufacturing, Research & Innovation Centre, Quality Centre, Consumer Evaluation Centre, Application Centre, Administration block, and Perfumery Training Centre.
• General Corporate Purposes: Remaining funds earmarked for general business needs and corporate initiatives to support strategic growth plans and working capital requirements.

Financial Performance of Sacheerome IPO

Sacheerome has shown exceptional financial performance with a remarkable growth trajectory:

• Revenue: ₹108.13 crore for FY25, demonstrating robust business momentum with 25% growth from ₹86.40 crore in FY24, reflecting strong demand for fragrances and flavours across industries.
• Net Profit: ₹15.98 crore in FY25, showing an outstanding growth trajectory with a 50% surge from ₹10.67 crore in FY24, showcasing improved operational efficiency and margin expansion.
• Financial Metrics: The company shows exceptional ROE of 23.10% and impressive ROCE of 33%, with a low debt-to-equity ratio of 0.06, indicating a strong financial structure and efficient capital utilisation.
   

Sacheerome offers an exceptional investment opportunity in the fragrances and flavours manufacturing sector with its established market presence, strong R&D capabilities, and outstanding financial performance. While it faces challenges such as intense competition and concerns about profit sustainability, its manufacturing expertise and expansion plans position it well to capitalise on India's growing demand for premium fragrances and natural flavours, driven by the expanding FMCG sector and evolving consumer preferences. The stellar listing performance, with a 50% premium and an extraordinary subscription of 312.94 times, reflects exceptional investor confidence in the company's business model and growth prospects in the fragrances and flavours market.