Sacheerome’s IPO sizzles as GMP leaps to show 40% listing pop; Final day subscriptions top 60x

Fragrance maker Sacheerome’s initial public offering (IPO) is gearing to wrap up on a high note Wednesday, with its grey market premium (GMP) surging to Rs 41, up from Rs 30 a day earlier, indicating a likely listing price of Rs 143. That’s a 40.2% premium over the IPO’s cap price of Rs 102, underscoring red-hot investor interest in the SME issue.

By 10:55 a.m. on the final day of bidding, the IPO had been subscribed 60.65 times in total. The Non-Institutional Investor (NII) portion led the charge with 130.15 times subscription, followed by the retail category at 60.04 times. The Qualified Institutional Buyer (QIB) segment saw more tempered interest, subscribing 9.53 times.

Sacheerome IPO GMP

On Day 2, the GMP stood at Rs 30, pointing to a potential listing price of Rs 132, a 29.4% premium. The sharp jump to Rs 41 on Wednesday morning signals surging demand and growing optimism among grey market traders.

IPO structure and next steps

The Rs 61.62 crore issue comprises a fresh offer of 60.41 lakh shares. With a minimum lot size of 1,200 shares, retail investors had to commit at least Rs 1,22,400 to participate. The issue opened on June 9 and closes today.

Allotment is scheduled for June 12, with the shares expected to list on the NSE SME platform on June 16. GYR Capital Advisors is the book-running lead manager, while MUFG Intime India (Link Intime) serves as the registrar.

Business fundamentals and growth plans

Established in 1992, Sacheerome manufactures fragrances and flavours used in personal care, home care, air care, pet care, men’s grooming, and food products. It exports to the UAE and African countries, and had a workforce of 153 as of September 2024.

In FY25, the company reported revenue of Rs 108.13 crore and net profit of Rs 15.98 crore, marking a 50% year-on-year jump. IPO proceeds are earmarked for setting up a new manufacturing unit in Gautam Buddha Nagar, Uttar Pradesh, and for general corporate needs.

Armed with “strong R&D capabilities, experienced management team, and efficient sourcing,” Sacheerome is looking to deepen its presence in the highly competitive fragrances and flavours industry.

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