Shubhshree Biofuels Energy IPO Listing: Shares of Shubhshree Biofuels Energy made a strong entry in the stock market on Monday, September 16. The company's shares were listed on the NSE SME platform for Rs 189, which is about 58.8 percent higher than its issue price. The company's IPO came for Rs 119 per share. In this way, this IPO has given a strong profit of about 58.8 percent to its investors on the first day. The IPO of Shubhshree Biofuels Energy was open for bidding between 9 and 11 September last week. The company had fixed a price band of Rs 113 to Rs 119 for its shares. This IPO was entirely of new shares, through which the company raised a total of Rs 16.56 crore.

The IPO received a tremendous response from investors and closed with a total subscription of 132.89 times on the last day. The company received the highest bid in the category of NII, who subscribed the shares reserved for them by about 245.74 times. At the same time, the company received 135.65 and 31.32 times more bids in the retail and qualified institutional buyers (QIB) categories respectively.

The company said it will use the funds raised through the IPO to install additional plant and machinery, meet its working capital requirements, and for other general corporate purposes.

Shubhshree Biofuels Energy IPO: About the Company

Shubhashree Biofuels Energy Limited started its business in the year 2013. The company supplies biomass fuel including biomass pellets and briquettes to clients engaged in sectors such as recycled material, textile processing, pharmaceuticals, metals, etc. The company has installed three briquetting and pelleting machines, one owned by the company and the other two leased along with their campus having a combined capacity of 132 tonnes per day.

In the period from October 2023 to February 2024, the company produced 12090 tonnes of biomass fuel while the total sales volume was around 50600 tonnes and the share of manufacturing goods in it was around 23.8%. The company's customers are mainly from the northern states of India, especially Haryana, Uttar Pradesh, Rajasthan, and the NCR region.

Shubhshree Biofuels Energy IPO: Financial health of the company

Shubhshree Biofuels Energy's net profit grew 36 percent to Rs 3.29 crore in FY24 from Rs 2.42 crore in the previous fiscal. Its revenue grew by about 56 percent to Rs 94.88 crore during this period from Rs 59.71 crore in the previous financial year.