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The IPO, priced at Rs 115 per share, consisted entirely of a fresh issue of 26.40 lakh shares. Retail investors showed notable interest, leading to a 3.09 times subscription in the retail category, while the overall subscription stood at 1.75 times. However, the HNI portion remained underwhelming at just 0.41 times.
The Rajkot-headquartered company is engaged in the manufacture of refined castor oil (First Stage Grade) and castor de-oiled cake, catering to both domestic and agricultural industries. Its operations span across Gujarat and other Indian states including Haryana, Andhra Pradesh, Bihar, and Telangana.
Proceeds from the IPO are earmarked for working capital requirements, debt repayment, and capacity expansion at its Dhinoj facility in Gujarat.
In terms of financials, Vandan Foods reported a sharp rise in revenue and profits in FY24 and the nine-month period ending December 2024. Revenue jumped to Rs 72.66 crore while PAT surged to Rs 4.54 crore, reflecting the company’s operational scale-up.
Given the lack of listing premium and moderate response from institutional and HNI categories, listing day gains, if any, may be limited and largely sentiment-driven.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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