Snehaa Organics Ltd. IPO is live on the NSE SME platform, gaining serious attention due to its focus on sustainable solvent recovery. With its ₹115–₹122 price band, strong financials, and eco-conscious positioning, investors are watching closely. Here’s your complete guide to this IPO.
🏢Company Overview
- Incorporated: October 2017, Hyderabad
- Core Business: Solvent recovery and recycling, using distillation and purification tech for reuse in sectors like pharmaceuticals, specialty chemicals, and paints.
- Facility: 3,300 sq. ft., high utilization (~88%) .
- Strengths: Strong B2B client base, experienced promoters, efficient operations.
📊 IPO Details
| Particulars | Details |
|---|---|
| IPO Open Date | August 29, 2025 |
| IPO Close Date | September 2, 2025 |
| Price Band | ₹115 – ₹122 per share |
| Lot Size | 1,000 shares |
| Minimum Application | 2 lots = ₹2,44,000 (Retail) |
| Issue Size | ₹32.68 crore (fresh issue) |
| Reserved Market Maker | 1,34,000 shares |
| Listing Exchange | NSE SME |
📌Objectives of the IPO
Funds will be used for working capital, debt repayment, and general corporate purposes .
💰Financial Performance
| Metric | FY25 / ₹ Crore | FY24 / ₹ Crore |
|---|---|---|
| Revenue | 26.29 | 23.80 |
| PAT | 7.34 | 3.66 |
| EBITDA | 11.41 | 5.83 |
| Assets | 30.06 | — |
| Borrowings | 9.09 | — |
| RoE / RoCE | ~50% / ~50% | — |
| Valuation (P/E) | 12× FY25 earnings | Industry avg: ~50× |
Snehaa shows impressive financial growth, high margins, and attractive valuation metrics.
📈 Grey Market Premium (GMP) & Subscription Update
- GMP: ₹34–₹38 above upper band (~28% expected listing gain).
- Subscription Day 1:
- Retail: 2.92×
- NII: 1.05×
- QIB: 1.00×
- Total: 1.94×.
⚠️ Note: GMP is unofficial, highly volatile, and only an indicator. It should not be the sole basis for investment decisions.
🗓️ Allotment & Listing Timeline
| Event | Date |
|---|---|
| Basis of Allotment | September 3, 2025 |
| Refunds & Demat Credit | September 4, 2025 |
| Listing Date | September 5, 2025 |
📌Pros & Cons (Neutral View)
Pros:
- Sustainable business model in solvent recycling
- Strong financials and high returns (RoE/RoCE)
- Attractive valuation with high GMP + strong subscription
Cons / Risks:
- SME IPOs may face liquidity challenges
- High leverage (borrowings ~₹9 crore vs assets)
- Customer concentration: top 5 customers contribute ~56% of revenue
📌Conclusion
Snehaa Organics IPO shows strong promise with sustainability credentials and impressive financial growth. Investors could benefit from short-term listing gains and long-term potential. Still, it’s essential to weigh risks like liquidity, customer concentration, and SME volatility.
⚠️ Disclaimer
The content on Snehaa Organics IPO Blog is for educational and informational purposes only. It does not constitute financial, investment, or legal advice. IPO investing, especially in SME issues, involves risks including volatility and liquidity concerns. Readers should perform their own due diligence or consult a certified financial advisor before investing. The blog and its authors are not responsible for any investment loss.
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