Shubhshree Biofuels Energy made an impressive debut on the stock market on September 16, listing at ₹189 on the NSE SME platform. This marked a significant 58.8% premium over its IPO price of ₹119 per share.
Despite the strong listing, the gains were slightly below the grey market expectations, where shares were trading at a 63% premium before the official debut. The grey market is an unofficial market where shares are traded before the actual listing.
The ₹16.56 crore public offer saw strong demand, with the issue being oversubscribed nearly 133 times. Non-institutional investors led the charge, subscribing 245.7 times the portion reserved for them, while retail investors and qualified institutional buyers subscribed 135 times and 31 times, respectively.
Shubhshree Biofuels supplies biomass fuels such as pellets and briquettes to industries in sectors like recycled materials, textile processing, pharmaceuticals, and metals. The company operates three pelleting machines, with one owned and two leased, offering a total production capacity of 132 tonnes per day.
The company plans to use the proceeds from the IPO for capital expenditure, working capital needs, and general corporate purposes.
