IPO: Shreeji Global FMCG IPO Listing: Investors Face 20% Loss, Recovery Efforts Fall Short

Today, Shreeji Global FMCG, a company known for selling spices and other FMCG products under the 'Sethji' brand name, made its debut on the NSE SME platform. The listing proved to be a significant disappointment for IPO investors, as the shares entered the market at ₹100. 00, a substantial discount compared to the IPO issue price of ₹125. This immediate drop translated into a 20% capital erosion for. Initial investors, marking a challenging start for the company's public journey.

Initial Setback and Recovery Attempts on Listing

Upon listing, Shreeji Global FMCG shares faced an immediate and considerable setback. Opening at ₹100. 00, the stock attempted a recovery, climbing to ₹101. 25, while however, this modest rebound was insufficient to offset the initial losses incurred by IPO investors. Even after this recovery, investors are still facing a deficit of 16, while 80% on their original investment, highlighting a difficult trading day. This situation raises concerns for those who had anticipated listing gains from their investment in the company.

Strong IPO Subscription Response

The Shreeji Global FMCG IPO, valued at ₹85 crore, was open for subscription from November 4 to November 7, while the IPO received a strong response from investors, being oversubscribed by 3. 27 times overall. The Qualified Institutional Buyers (QIB) portion, excluding anchor investors, was subscribed 1. 64 times, while the Non-Institutional Investors (NII) segment saw a subscription of 5. 06 times. Retail investors also showed keen interest, with their portion being subscribed 2, while 91 times. This strong subscription indicated a positive market sentiment towards the IPO, though the listing performance didn't align with these initial expectations.

Utilization of IPO Funds

Under the IPO, 68 lakh new shares with a face value of ₹10 each were issued. The capital raised through this offering is earmarked for various strategic initiatives aimed at enhancing the company's operational capabilities and facilitating future growth. Specifically, ₹5. 67 crore will be allocated towards factory premises, which is crucial for expanding production capacity and strengthening the company's manufacturing infrastructure, while On top of that, a substantial sum of ₹29. 01 crore is designated for investment in plant and machinery, as well as cold storage facilities, vital for maintaining product quality and expanding storage capabilities.

Investment in Solar Power and Working Capital

In a move towards sustainable operations, the company plans to invest ₹4. 05 crore in solar power for internal consumption, while this initiative is expected to reduce energy costs and minimize the company's environmental footprint. Also, a significant portion of ₹33. 54 crore has been allocated to meet working capital requirements,. Ensuring adequate liquidity for day-to-day operations and supporting ongoing growth initiatives. The remaining funds will be utilized for general corporate purposes, providing the company with flexibility to address strategic priorities and unforeseen needs as they arise.

Overview of Shreeji Global FMCG's Business Model

Shreeji Global FMCG operates under the 'Sethji' brand, offering a diverse range of. Fast-Moving Consumer Goods (FMCG) products, including whole and ground spices, pulses, and flour. The company's product portfolio is extensive, featuring essential kitchen staples such as chickpeas (chana), cumin (jeera), coriander, peanuts, fennel, coriander powder, red chili powder, and turmeric powder. This broad selection allows the company to cater to a wide spectrum of consumer preferences and market demands. Beyond its domestic offerings, Shreeji Global FMCG also engages in global sourcing to ensure the quality and uniqueness of its products. The company imports coriander from UAE and cloves from Madagascar. Also, it sources low-fat desiccated coconut from Sri Lanka, star anise, cigar cassia, broken cassia, and split cassia from Vietnam, and milling wheat from Singapore, while these imported raw materials are subsequently processed at the company's facilities, ensuring high-quality finished products for consumers. This global supply chain strategy provides the company with a competitive edge in the market.

Global Sourcing and Processing Capabilities

Solid Financial Performance

Financially, Shreeji Global FMCG has demonstrated a consistently strong performance. The company's net profit stood at ₹2. 05 crore in Fiscal Year 2023, which then surged to ₹5, while 47 crore in FY2024 and further to ₹12. 15 crore in FY2025, while this sustained growth underscores the company's operational efficiency and increasing market demand for its products. During this period, the company's total income grew at a Compound Annual Growth Rate (CAGR) exceeding 11%, reaching ₹650. 85 crore, highlighting its solid revenue expansion.

Current Fiscal Year Performance and Financial Health

For the current fiscal year 2026, Shreeji Global FMCG has continued its impressive performance, reporting a net profit of ₹9. 20 crore and a total income of ₹251. 18 crore for the April-August 2025 period, while this strong early performance provides a positive outlook for the full fiscal year. As of the end of August 2025, the company's total debt amounted to ₹29, while 55 crore, while its reserves and surplus stood at ₹22. 80 crore, while this financial position indicates the company's stability and its capacity for future growth, despite the initial setback experienced during its IPO listing.