Shreeji Global FMCG IPO Listing: Stock lists at 20% discount on NSE SME

Shreeji Global FMCG IPO Listing: 20% Capital Lost on Listing, ‘Sethji’ Fails to Generate Profits Despite Recovery Attempt

Shares of Shreeji Global FMCG Limited, the company behind the popular “Sethji” brand of spices and food products, made a disappointing debut on the NSE SME platform today. Despite strong pre-listing enthusiasm and heavy oversubscription, the company’s shares opened at a significant 20% discount to the issue price, eroding investor confidence on day one.

Disappointing Market Debut Despite Strong Demand

The Initial Public Offering (IPO) of Shreeji Global FMCG had created quite a buzz in the SME market prior to listing. The IPO was priced at ₹125 per share, and during the subscription window—from November 4 to November 7—it received bids totaling 3.27 times the offered shares. This indicated a seemingly strong demand from investors across all categories, including institutional and retail participants.

However, when trading began on the NSE SME exchange, investor optimism quickly turned into disappointment. The stock opened at ₹100.00 per share, representing a 20% loss for IPO investors right at the start. Throughout the day, the stock attempted to stage a recovery, touching an intraday high of ₹105.00, but could not sustain the momentum amid selling pressure and profit-booking by short-term traders. By market close, the shares settled at ₹101.00, marking a 19.20% loss compared to the IPO price.

This performance underscores a growing trend in India’s SME IPO segment: despite high subscription rates and pre-IPO hype, several new listings are failing to deliver listing gains, raising concerns about overvaluation and weak post-listing demand.

Breakdown of IPO Subscription and Fund Utilization

The ₹85 crore IPO of Shreeji Global FMCG was entirely a fresh issue of approximately 6.8 million equity shares with a face value of ₹10 each. No offer for sale (OFS) component was included, meaning all proceeds from the issue were directed toward the company’s growth and expansion plans.

The subscription breakdown was as follows:

• Qualified Institutional Buyers (QIBs): 1.64 times (excluding anchor investors)
• Non-Institutional Investors (NIIs): 5.06 times
• Retail Individual Investors (RIIs): 2.91 times

Despite a relatively healthy response across categories, the modest oversubscription ratio in the QIB category signaled cautious sentiment among institutional investors — a potential early indicator of weak listing performance.

The company outlined a clear plan for the use of IPO proceeds:

• ₹5.67 crore for the purchase of factory premises
• ₹29.01 crore for the acquisition of plant, machinery, and cold storage facilities
• ₹4.05 crore toward the installation of solar power systems for internal energy needs
• ₹33.54 crore to meet working capital requirements
• The balance funds earmarked for general corporate purposes

These investments are intended to strengthen the company’s production capacity, reduce operational costs, and improve sustainability through renewable energy usage.

About Shreeji Global FMCG and Its Operations

Shreeji Global FMCG Limited operates primarily in the food processing and FMCG sector, focusing on the sale of whole and ground spices, pulses, and flour under its flagship brand “Sethji.” The brand has established a reputation in both retail and wholesale markets, catering to households and food businesses alike.

Its wide product portfolio includes staples such as:

• Whole spices: chickpeas, cumin, coriander, peanuts, fennel
• Ground spices: coriander powder, red chili powder, turmeric powder

The company also has an international sourcing network. It imports UAE coriander and Madagascar cloves, along with low-fat dried coconut from Sri Lanka. Additionally, star anise, cigar cassia, broken cassia, and split cassia are imported from Vietnam, while milled wheat is procured from Singapore. These imported raw materials are then processed and packaged domestically at the company’s facilities before being distributed to retailers and institutional buyers across India.

Financial Performance: Steady Growth, Rising Profits

From a financial standpoint, Shreeji Global FMCG has shown consistent improvement over the last three years.

• In FY 2023, the company reported a net profit of ₹2.05 crore.
• This increased sharply to ₹5.47 crore in FY 2024, and further to ₹12.15 crore in FY 2025.

Over the same period, the company’s total income rose steadily, reaching ₹650.85 crore, with a compound annual growth rate (CAGR) exceeding 11%. This indicates healthy revenue expansion and improving profit margins, likely driven by efficiency in operations and better raw material management.

For the ongoing FY 2026, during the five-month period from April to August 2025, Shreeji Global reported a net profit of ₹9.20 crore and total income of ₹251.18 crore, suggesting continued strong performance. As of August 2025, the company’s total debt stood at ₹29.55 crore, against reserves and surplus of ₹22.80 crore, reflecting a moderate leverage position and a reasonably balanced financial structure.

Investor Sentiment and Market Outlook

Despite robust financials and a strong brand presence, Shreeji Global FMCG’s disappointing listing suggests that valuation concerns and market volatility played a role in investor hesitation. Many SME IPOs in recent months have faced similar fates, opening below issue prices as investors become more cautious amid fluctuating broader market conditions and concerns about liquidity in SME counters.

Analysts also note that while the company’s fundamentals appear solid, pricing may have been on the higher side, leaving little room for listing gains. In such cases, even a small mismatch between expectations and reality can lead to sharp corrections immediately after listing.

For long-term investors, however, Shreeji Global FMCG’s steady earnings growth, expanding infrastructure, and commitment to sustainability could present potential upside once short-term pressures subside. The company’s emphasis on scaling operations and enhancing supply chain efficiency may also help it compete better with established FMCG players in the spice and food ingredients market.

Final Thoughts: A Sobering Debut but Long-Term Potential Remains

The Shreeji Global FMCG IPO serves as a reminder that subscription figures alone don’t guarantee listing success. Despite healthy demand and promising fundamentals, the stock’s 20% discount listing reflects the complex interplay of market sentiment, valuation metrics, and post-issue liquidity.

While day-one investors have suffered immediate notional losses, Shreeji Global’s consistent profit growth, diversified sourcing network, and expansion-driven use of IPO proceeds could support its recovery in the medium term. For now, however, the “Sethji” brand’s public market debut underscores a hard truth of SME investing — in today’s volatile environment, even strong companies can stumble at the starting line.