Shanthala FMCG Products Makes Strong Debut on NSE SME, Lists at 18.6% Premium Over Issue Price

In a promising market entry, Shanthala FMCG Products commenced trading with an 18.6 percent premium over its IPO price on November 3. The stock opened at Rs 108, surpassing the IPO price of Rs 91 on the NSE SME platform.

By 1:15 pm, the stock was trading at Rs 105.25, reflecting a 15.6 percent increase from the issue price. Shanthala FMCG Products had conducted an initial public offering (IPO) worth Rs 16.07 crores, consisting entirely of a fresh issue of 17.66 lakh shares. The subscription window for the offer was open from October 27 to October 31 and garnered 3.91 times oversubscription.

The funds raised from the IPO will primarily serve to meet additional working capital requirements and support other corporate purposes.

Following the IPO, the promoters and the promoter group’s stake in the company reduced from 77.44 percent to 57.01 percent. The key figures behind Shanthala FMCG Products include Manjunath Mallya, Shobitha Malya, Sneha Vinayak Kudva, and Yogish Mallya.

First Overseas Capital Limited acted as the lead manager for the IPO, with Bigshare Services Pvt Ltd serving as the registrar and Bhh Securities as the market-maker.

Shanthala FMCG Products is an FMCG product distribution company in the small and medium enterprise sector. It specializes in distributing branded packaged foods, personal care products, educational materials, and stationery products. Notably, the company secured authorization as a distributor for ITC in 2007.