SOLVEX EDIBLES IPO announcement today. Check GMP prior to debut

SOLVEX EDIBLES, a manufacturer and distributor of rice sealing oil and associated by -products, closed his RS 19 Crore IPO on 26 September. The shares of the company are mentioned today. The IPO has a Tepid Investor Response with the Gray Market Premium (GMP) retained by 0%, suggesting that the excitement with a limited list of listing day.

Subscription status

The problem was generally subscribed to 1.02 times. The category Non-institutional investor (NII) received bids against his quota 1.31 times, while the retail trade was subscribed to only 0.73 times. The issue included 26.20 Lakh shares, of which 24.89 Lakh was offered to the public.

Solvex Edibles is working on production, marketing and distribution of rice sealing oil extracted by solvents and by-products such as de-oiled rice seams and mustard cakes.

The factory, located in Bilaspur, Uttar Pradesh, has a processing capacity of 200 TPD, supported by integrated extraction facilities. The company currently supplies products in 18 states, aimed at animal feed, poultry feed, fish food and FMCG industry.

The company reported strong growth in FY25, with turnover by 90% to RS 136.46 crore and profit after tax -jumping 305% to RS 4.09 crore. EBITDA -Marge improved to 8.26%, while Pat -Marge was 3.02%. Return on Equity (roe) was healthy with 23.69%.

The IPO yield will mainly be used for capital expenditures for the acquisition of new factory and machines at the existing facility (RS 8.31 Crore), reimbursement of loans (RS 5.90 Crore) and general business purposes (RS 2.79 Crore).

Despite a healthy growth in FY25, the Solvex Edibles IPO saw a lukewarm reaction from investors, and the flat GMP indicates cautious sentiment prior to the offer of 1 October.

((Indemnification: Recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)