Shreeji Global FMCG Limited Makes Weak Debut with 17.20% Decline, Lists at ₹103.50 Against Weak Subscription

Shreeji Global, a manufacturer and marketer of agri products including ground and whole spices, seeds, grains, pulses, flours, and other food products under the "SHETHJI" brand offering products ranging from channa, cumin seeds, coriander seeds, sesame seeds, groundnut, kalonji seeds, fennel seeds, coriander powder, red chilli powder, and turmeric powder, importing agro commodities like Madagascar Cloves, Coriander seeds from UAE, Reduced FAT Desiccated Coconut from Sri Lanka, Autumn Star Anise, Cigar Cassia from Vietnam, and Milling Wheat from Singapore with two strategically located manufacturing facilities in Rajkot and Morbi serving individual traders, small businesses, and large corporates, made a weak debut on NSE SME on November 12, 2025. After closing its IPO bidding between November 4-7, 2025, the company commenced trading with significant decline of 20.00% opening at ₹100.00 and recovered slightly to ₹103.50 with losses of 17.20%, reflecting highly negative investor sentiment towards the FMCG spices sector backed by weak subscription of only 3.27 times and moderate anchor backing of ₹14.53 crore.

Shreeji Global FMCG Limited Listing Details

Shreeji Global FMCG launched its IPO at ₹125 per share with minimum investment of 2,000 shares costing ₹2,50,000. The IPO received weak response with subscription of only 3.27 times - retail at modest 2.91 times, QIB at weak 1.64 times, and NII at moderate 5.06 times (bNII at 6.16 times and sNII at 2.85 times), indicating limited institutional confidence and subdued retail interest in the agri products business despite strategic geographic advantage and wide product portfolio.

First-Day Trading Performance

Listing Price: Shreeji Global FMCG opened at ₹100.00 representing significant decline of 20.00% from issue price of ₹125.00, recovered to ₹103.50 (down 17.20%) with intraday high at ₹105.00 (down 16%) and low at ₹99.00 (down 20.80%), with VWAP at ₹100.85, delivering substantial losses of ₹21.50 per share reflecting extremely negative market sentiment about aggressive valuation and earnings sustainability concerns.

Growth Drivers and Challenges

Growth Drivers:

Diversified Product Portfolio: Wide range offering ground and whole spices, seeds, grains, pulses, flours under "SHETHJI" brand, import capabilities for agro commodities from UAE, Sri Lanka, Vietnam, and Singapore, two manufacturing facilities in Rajkot and Morbi, product packaging from 20 grams to 40 kilograms serving diverse customer segments.

Strategic Market Positioning: Entry into wholesale B2B segment and D2C channels widening market scope, serving individual traders, small businesses, and large corporates, strategic geographic advantage in Gujarat, experienced promoters and leadership team.

Strong Financial Growth: Revenue increased 11% and PAT surged exceptional 122% between FY24 and FY25, exceptional ROE of 51.74%, solid ROCE of 32.07%, RoNW of 41.11%, though with thin PAT margin of 1.87% and EBITDA margin of 3.13%.

Challenges:

Extremely Poor Listing Performance: Massive decline of 17.20% on listing with opening down 20%, weak subscription of 3.27 times with QIB at disappointing 1.64 times showing institutional hesitancy, market capitalization fell to ₹235.57 crore against pre-IPO estimate of ₹284.50 crore.

Sustainability Concerns and Aggressive Valuation: Quantum jump in bottom lines in pre-IPO years raising eyebrows about sustainability going forward, post-issue P/E of 12.89x and price-to-book of 10.50x appearing aggressively priced based on inflated earnings, expert review describing it as "pricey and dicey High Risk/Low Return" IPO recommending to skip.

High Debt and Competitive Pressures: Elevated debt-to-equity of 1.03, total borrowings of ₹29.55 crore as of August 2025, thin margins with PAT margin of 1.87% and EBITDA margin of 3.13%, operating in highly competitive and fragmented agri products segment, significant promoter dilution from 99.99% to 70.12%.

Utilisation of IPO Proceeds

Capacity Expansion: ₹5.67 crore for factory premises, ₹29.01 crore for plant, machinery, and cold storage, ₹4.05 crore for solar power for internal consumption enhancing sustainability.

Working Capital: ₹33.54 crore funding working capital requirements supporting inventory and operational cash flows in agri products business, plus unspecified amount for general corporate purposes.

Financial Performance

Revenue: ₹650.85 crore for FY25, growth of 11% from ₹588.99 crore in FY24, reflecting expanding operations in spices and agri products.

Net Profit: ₹12.15 crore in FY25, exceptional growth of 122% from ₹5.47 crore in FY24, though sustainability concerns remain.

Financial Metrics: Exceptional ROE of 51.74%, solid ROCE of 32.07%, elevated debt-to-equity of 1.03, thin PAT margin of 1.87%, EBITDA margin of 3.13%, price-to-book of 10.50x, post-issue EPS of ₹9.70, P/E of 12.89x, and market capitalisation of ₹235.57 crore.